Azernews.Az

By Kamila Aliyeva

Russia's Energy Ministry and the Iranian Ministry of Oil signed a memorandum on supporting the project aimed to deliver natural gas from Iran to India on November 1.

This was stated by Russian Energy Minister Alexander Novak on November 2, RIA Novosti reported.

"The agreement that was signed yesterday is aimed primarily at implementing projects related to gas production in Iran and the supply of this resource to India through Pakistani exclusive economic zone along the bottom of the Persian Gulf," he said in an interview with Russia 24 television channel.

It is quite real that it will enter into practical stage in the near future, according to Novak.

Yesterday, Novak said that Russia’s energy giant - Gazprom - plans to produce natural gas in Iran and will build a 1,200 kilometer gas pipeline from Iran to India. Specific deposits in Iran will be determined as part of the feasibility study for the project.

Construction is expected to start next year, according to the minister. Novak didn’t disclose how much it will cost but said it will be significant, as the pipeline will include an underwater part that will pass through the Persian Gulf.

In June, Deputy Chairman of the Gazprom Management Committee Vitaly Markelov reported that the company signed memorandums with Iran on the possibility of participating in the development of four fields in the republic - Farzad-A, Farzad-B, North Pars and Kish.

In mid-June, Gazprom's deputy chairman of the board, Alexander Medvedev, said that the company was discussing gas supplies to India. He noted that the use of exchange transactions involving China and Iran is not excluded.

In May, Deputy Energy Minister Yury Sentyurin reported that Russia and India are considering various options for Russian gas supplies to the country. In particular, in addition to the construction of a pipeline, gas may be supplied through swap operations, including with the participation of Iran, as well as in the form of LNG from the Gazprom portfolio. He also noted that India has indicated its gas deficit in the amount of up to 25 billion cubic meters per year.

Iran's proven gas reserves amount to 33.5 trillion cubic meters of gas. However, the country lacks necessary export infrastructure to realize gas sales. Under sanctions, Iran was banned from the global financial system, preventing the development of its oil and gas fields and necessary infrastructure.

Iran’s gross gas output stands at 285bn m3/yr. The country plans to increase this volume to about 440 bcm/y by 2021 after full operational of South Pars and starting gas production from other projects like Kish gas field.

The country recently signed a multibillion-dollar gas deal with France’s Total for investment in Phase 11 of South Pars. This deal is the Islamic republic's first one with a European oil company in more than a decade.

Within a 20-year period, 335 billion cubic meters of soar gas will be extracted from the phase. Once processed, 315 billion cubic meters of sweet gas, 290 million cubic meters of gas condensate, 2 million tons of sulfur, 14 million tons of liquefied petroleum gas and 12 million tons of ethane will be produced.

The Phase 11 is expected to bring $84 billion worth of revenues for Iran, based on the current price of crude oil.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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