Iran Expects $7 bn in Revenues from Gas Exports to Turkey, Iraq Next Year

Iran is expected to generate revenues of close to $7 billion from gas exports to Turkey and Iraq in the new Iranian calendar year, which starts on March 21.

According to National Iranian Gas Company (NIGC) managing director, Hamidreza Araqi gas prices would differ depending on whether it will be exported in the form of LNG or via pipelines, Fars News Agency reported.

“Gas prices vary in NIGC export contracts,” Araqi said. 

Iran exported 10 billion cubic meters of gas in the past year. The revenues have not been specified accurately, but it has been estimated at $4-5 billion, Araqi stated.

Currently, Iran exports natural gas via pipelines to three neighboring countries – Turkey, Armenia, and Azerbaijan. Turkey receives more than 90 percent of Iran’s natural gas exports under a long-term contract. Armenia and Azerbaijan have swap arrangements with Iran that account for 6 percent and 3 percent of Iran’s natural gas exports, respectively. Armenia exports electricity to Iran to compensate for the natural gas volumes it receives.