Shana – Managing Director of National Iranian Gas Company (NIGC) Hamid-Reza Araqi says Iran and Russia enjoy the capacity to set up international joint gas market.

Araqi made the remark after conclusion of a Memorandum of Understanding (MoU) by Russian Gazprome and the NIGC.
He told the reporters that earlier, it was supposed Iran and Russia are gas rivals, while the two sides can use their facilities to set up joint international gas market.
He said Iran and Russia are the two countries enjoying huge gas reserves, so can have joint cooperation and interests in the gas markets.

He added that Iran and Russia can have common lands, in the far northern and far eastern parts of which there are huge gas reserves.

Araqi said now the NIGC has completed the first 50 years of its activity and it is expanding its activities in gas supply.

"The volume of gas production of Iran is more than the domestic need, so our outlook should be changed in favor of quality than quantity. Through optimizing energy consumption and upgrading technology, we can consume gas properly and increase the export capacity."

He went on to announce that Russia is more advanced than in Iran in parts of gas fields and Iran has also gained considerable progress in CNG.

The official said there is possibility of promotion in sophisticated technology and we should benefit from Gazprom potential.

Araqi noted that conditions should be prepared in the Iran-Russia joint markets to feel we can share common interests with Gazprom company.

"Formation of several committees in various sectors by the NIGC and Russian Gazprom and holding joint sessions served as prelude to the MoU conclusion. By next two months, the working groups, defined by the two sides, will hold expert sessions and we hope the MoU will turn into contract."

Araqi noted that Iran and Russia can launch joint projects in Iran and other countries. "Gas swap is among other sectors that can prepare the ground for Iran-Russia joint cooperation. Since as of next year, Iran's gas production will exceed to one billion cubic meters as of next year from 700 million cubic meters, we need to focus on conservation so as to provide customers with gas in all seasons on sustainable basis. When wishing to deliver gas sustainably to various sectors, we should pay attention to storage."

He noted that Russia has gained good achievements in storage and we can cooperate in this domain.

"For the first ever, Iran and Russia signed an all-out gas MoU for joint cooperation. "

As for gas exports to Iraq, he said all necessary grounds for starting gas exports have been prepared.

He said after end of talks on quality of payment of the price for the gas shipped to Iran and opening of the LC, exports will begin.

As for his company's gas swap activities, he said, "Iran is now receiving gas from Turkmenistan and delivers it to Azerbaijan through cooperation of the private sector."

On the other hand, gas and electricity swap is also underway, added Araqi.