Iran’s gas export to neighbors profitable despite of Qatar’s dumping

TEHRAN, Feb. 6 (Shana) – Managing Director of the National Iranian Gas Company (NIGC) said exporting Iran’s gas to Pakistan and India is profitable in spite of dumping of the regional market by Qatar.

“Iran produces bulk of its gas from joint fields, therefore, any form of export will be profitable,” Hamid-Reza Araqi said at the ceremony to launch local gas projects in the Fars Province.

About the proposal to swap gas with Russia’s Gazprom company, he said both sides are still in negotiations.

“We have negotiated a range of issues in working sessions but we are yet to reach an agreement on swapping ,” he added.

Araqi added that Iran has the potential to receive gas from Russia and Turkmenistan in north and deliver it to the south of the country.

The deputy petroleum minister also said that construction of Bidboland-II gas refinery is underway and that it has applied for a loan from the National Development Fund.

Last Tuesday, Araqi said that cooperation with major international energy firms such as Italy’s Saipem and Russia’s Gazprom are increasing in the wake of removal of sanctions.

“With Gazprom, there are five joint committees established on investment, repair, maintenance, storage, and refinery,” he said.

On exporting gas to neighboring countries, Araqi also said that when Iraq announces its readiness, Iran will be pumping 7 mcm/d of gas for nine months according to the contract which is scheduled to increase to 14 mcm/d and 25 mcm/d.

To a question on Iran-Pakistan gas pipeline, he said that the Pakistani side is working to construct the pipeline on its soil to be connected to Iran’s facilities which are already installed.

By SHANA