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    EU, Iran Share Goal for Gas

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Summary

EU and Iranian objectives for gas coincide: EU diversifies and Iran finds new buyers

by: Iran desk

Posted in:

Natural Gas & LNG News, Greater Caspian News, Liquefied Natural Gas (LNG), News By Country, Czech Republic, Iran

EU, Iran Share Goal for Gas

Iran’s deputy energy minister for foreign trade affairs Amir Hossein Zamaninia said on January 19 that although gas exports from Iran to the EU are not feasible at the moment, it is still a long-term strategy of both sides.

Iranian officials have repeatedly announced that only exporting LNG to Europe is beneficial for the country. However, Iran's ambassador to Baku said January 19 that once sanctions are lifted, Tehran is capable of joining major regional projects such as Tanap.

The European Commission has been eyeing gas imports from Iran as it works to reduce its dependency on Russian energy, the Wall Street Journal reported on January 18. "Commission officials say that the EU could import between 25 and 35 bn m³/yr by 2030. Because pipeline capacities from Iran to Europe are limited, most of that would likely come in the form of liquefied natural gas, or LNG, and could reach the EU via currently underused LNG ports in Spain," it reported. Before, Iran announced that Spain is ready to receive Iranian LNG

Iran’s energy minister Bijan Namdar Zanganeh also said after a meeting with the Czech trade and industry minister Jan Mládek in Tehran on January 18 that the Czech Republic was interested in importing natural gas from Iran. “For the time being, exporting gas to this country via pipeline is not viable. However, Iran has a semi-finished LNG plant. If the Czech side is interested, it can sign a long-term contract with Iran for investing in the project,” Zanganeh explained.

Czech companies can cooperate with Iranian partners for transferring technology and manufacturing products required for the Iranian gas industry, he said, adding that they can also invest in Iran’s petrochemical sector.

He said the Czech Republic was “industrially capable” and could help Iran build oil equipment, Shana news agency quoted Zanganeh as saying. “Iran has expressed readiness to cooperate with Czech Republic in establishing underground gas storage facilities.”

The first Iranian LNG plant (Iran LNG) has yet to come on stream, after Germany's Linde withdrew from the project under pressure of sanctions. Some $2.5bn have been invested in the $5bn project. The plant’s capacity is projected to be 10.5mn metric tons/year.