Sputnik - The Trump administration's sanctions policy has brought Russia and Iran closer together in the field of energy cooperation, Iranian Deputy Minister of Oil Hamid-Reza Araghi told Sputnik. Given the growing demand for environmentally friendly fuel, Russian-Iranian gas cooperation is destined to thrive regardless of US restrictions, he opined.




In an energy market characterized by�increasing gas demand and the United States' punitive sanctions, Russia and Iran have become strategic partners in�the export and supply of�hydrocarbons, Deputy Minister of�Oil and CEO of�the National Iranian Gas Company (NIGC) Hamid-Reza Araghi told Sputnik Persian on�the sidelines of�the Russian Energy Week, which took place in�Moscow on�October 3-6.
"Iran and Russia are two world gas powers," Araghi underscored. "If one looks at�the British Petroleum's annual statistical reports, one would see that in�some years Russia came out�on top with�its 34 trillion cubic meters of�gas reserves, and in�other years Iran carried the day. (Despite) being the richest countries in�terms of�gas reserves, we have not become competitors under�current conditions."


Moreover, the Gas Exporting Countries Forum (GECF), also known as�the "gas OPEC," was established in�2001 in�Tehran bringing together 11 of�the world's largest natural gas producers. Araghi specified that while the gas cartel does not have the authority to�determine gas prices on�the market, "this association plays an effective role in�establishing the gas strategy, the volume of�production and consumption of�the fuel in�the coming years." He stressed that Moscow and Tehran remain partners within�the GECF framework.

The deputy minister of�oil highlighted that Iran needs to�maintain close cooperation with�the Russian Federation in�various gas projects including the extraction, storage and supply of�liquefied natural gas (LNG), as�well as�the development of�gas technology. "Toward this end, Iran and Russia (Gazprom Corporation) created five committees two years ago to�implement joint projects in�the energy field in�a variety of�areas, including projects for�the liquefaction of�gas and its sale," he said.
"Over five years of�close collaboration between�Iran and the Russian Federation in�the gas sector, a huge (volume of) research work had been conducted and technical knowledge obtained," Araghi underscored. "Iran independently produces an odorant mixture of�natural mercaptans. This is a knowledge-intensive industry which is available in�France, the United States, Russia, and maybe in�some other countries."


He elaborated that additionally, Iran and Russia had held talks on�the purchase and supply of�gas turbines with�a capacity of�16 MW. "Russia will be able to�master the production of�these turbines and commercialize it," the Iranian official noted.

Russia's Role in�the Iran-Pakistan Gas Project
"Russian gas giant Gazprom is very interested in�investing in�Iran's oil and gas sector," Araghi continued. "Therefore, the most important project of�the Russian-Iranian partnership at�the regional level could be the construction of�the Russian sea pipeline through�Kish Island to�deliver Iranian gas to�consumers in�Pakistan and India."


In late September, Moscow and Islamabad signed a memorandum of�understanding (MoU) on�implementing a project to�build an underwater gas pipeline from�Iran to�Pakistan and India.
Commenting on�the matter, the deputy minister of�oil noted that if all the parties concerned reach a consensus "this will be the largest and most important project in�the history of�gas cooperation between�Iran and Russia."


Trump's Sanctions Bring Moscow, Tehran Closer Together

At the same time, the Iranian official opined that Washington's sanctions had facilitated Russian-Iranian rapprochement, adding that the countries could counter US pressure.

In May 2018 President Donald Trump unilaterally withdrew from�the Joint Comprehensive Plan of�Action (JCPOA) and announced the resumption of�sanctions against�the Islamic Republic.�The final batch of�sanctions targeting the IRI oil sector�is due to�come into�effect on�November 4.

"We have different tools to�confront [this US pressure]," he said. "It is encouraging to�see that [Russian President] Vladimir Putin did not embrace [the decisions of�the United States] and at�a plenary meeting, he declared Russia's firm position against�unilateral American sanctions and the desire to�continue to�invest in�the Iranian oil and gas sector."
According to�Araghi Iran, Russia and Turkey have found themselves in�the same boat: "The United States announced sanctions against�us," he said. "But despite�this, the value of�the Russian ruble, the Turkish lira and even the Iranian riyal has [recently] risen [against the dollar]."


The official has drawn attention to�the fact that "the EU authorities are also unhappy" with�US actions toward�Iran: "Europe wants to�find all sorts of�ways in�order not to�lose its face (in front of) the people."

Washington's Gas Policy May Lead to�Catastrophe

Araghi believes that Trump's policies with�regard to�the Iranian gas sector could lead to�nothing short of�a global catastrophe.

"As a commercial product, natural gas differs from�crude (oil deliveries), that can be easily thwarted with�the help of�sanctions," he explained, referring to�the "ecological component of�gas deals."
"If gas reaches some point of�the Earth, this means that non-ecological types of�fuel (diesel or solid fuel, fuel oil, coal, etc.) will no longer be used," the official stressed. "Today, the International Gas Union (IGU) recommends that all countries should replace non-environmental fuels with�gas. Therefore, if Trump tries to�do something against�the gas sector, any of�his actions in�this direction will lead not only to�a fuel collapse, but�also to�a global environmental catastrophe, since�non-environmental fuels that pollute the air and the environment will be used instead of�gas."


He noted that at�the same time Iran had rejected the dollar as�a means of�payment for�its hydrocarbons due to�Trump's sanctions. Turkey, Iran's longstanding energy partner, has signaled that it would follow suit and�started drifting away from�the greenback.

Iran to�Push Ahead With Gas Projects Despite US Sanctions

The Iranian official stressed that Tehran would continue implementing its gas projects regardless of�US sanctions.

"Iran is developing various business profiles within�the gas sector," he explained. "We are not totally dependent on�the export of�this fuel. We carry out�the following�gas projects: storage, gas injection into�oil reservoirs of�fields, use of�this energy product in�industry. In our country, in�cities, 100 percent of�residents are provided with�gas, and in�villages�� at�95 percent. Over the past�five years we have managed to�gasify 14 thousand villages. The remaining 5 percent of�rural areas will be gasified either this year or next year."

Araghi expressed confidence that Iran's allies will continue to�buy the IRI's natural gas as�they need clean and environment-friendly fuel.