Iran to double gas exchange volume with Azerbaijan
Iranian Oil Minister Javad Owji said the volume of gas traded from Turkmenistan to Azerbaijan via Iranian territory would be doubled.
“Fortunately, everything is ready to increase the volume of the gas swap agreement, and it will be doubled very soon,” Owji told reporters during his visit to Baku, Azerbaijan, where he attended the Caspian Oil and Gas Exhibition and Baku Energy Forum. June 1-3.
Owji said Azerbaijan, Iran and Turkmenistan have nearly finalized deals to double the volume of gas specified in their swap deal. He added that the increase had been discussed in talks in Tehran, Baku and Ashgabat in recent months.
According to the gas swap agreement signed between three countries on November 28, 2021, Iran annually delivers 1.5 to 2 billion cubic meters (bcm) of Turkmen gas to Azerbaijan. From January 3, 2022, the supply of 5 to 6 million cubic meters (mcm) of gas per day began under the agreement. Iran receives Turkmen gas in the east of the country and also delivers an equivalent quantity to Azerbaijan.
In January, Owji pointed out that the Islamic republic had the capacity and infrastructure to increase the volume of gas traded with Turkmenistan to 40 million cubic meters per day or 10 to 15 billion cubic meters per year.
Meanwhile, Iranian media suggest that Iran is working on similar oil and gas swap deals with Russia, whose energy exports have been targeted by Western sanctions because of the war in Ukraine.
In a meeting with Iran’s Oil Minister on June 2, Azerbaijani Deputy Prime Minister Shahin Mustafayev discussed trilateral cooperation in gas transportation, saying that “cooperation in the energy sector could lead to a sustainable development in the region”.
During the meeting, the two sides also discussed vital areas such as the North-South transport corridor and trade transactions between Iran, Azerbaijan and Russia.
Furthermore, during a speech at the Baku Energy Forum, Owji spoke about Iran’s intention to increase gas supplies to Turkey, saying that “currently Iran is supplying Turkey 30 million cubic meters of natural gas per day. At the same time, our country supplies Iraq with about 60 million cubic meters of gas every day.
” Despite them [sanctions], Iran was able to develop its own oil and gas infrastructure. Today, Iran transports gas through pipelines to all neighboring countries. We can meet all the gas needs of our neighbours; we have all the infrastructure for that. In general, we are always ready to cooperate with all countries,” he added.
He recalled that “Iran’s gas reserves are around 34 trillion cubic meters” and stated that “we now have the capacity to produce one billion cubic meters of gas per day, our production capacity of oil is about 4 million barrels per day, and the annual production capacity of petrochemical products is about 92 million tons.
Tehran plans to reach its daily gas production capacity of 1.4 billion cubic meters per day in the next eight years and the production of 6 million barrels of crude oil per day.
Considering clean energy as one of the country’s priorities, Owji said that “this year we produced about 1,000 megawatts of renewable energy, which is expected to grow to 4,000 megawatts within the next four years.”