Iran Gas Balance To Get Worse Before It (Hopefully) Gets Better

Iran has set its sights on establishing itself as one of Europe’s main gas suppliers. But years of sanctions mean this is little more than a distant prospect. Already an importer, it is set to boost imports from Turkmenistan further.

Iran will increase imports of natural gas from Turkmenistan from next week, in an effort to boost supplies to the country’s northern regions ahead of the cold winter months, the head of the state-run National Iranian Gas Company (NIGC) says.

Despite holding the world’s second largest gas reserves – or largest, according to BP’s Statistical Review of World Energy (a whopping 1,193 tcf) – Iran has at best been a marginal net exporter in recent years. Exports of around 7-8 bcm/year, have been balanced, or in some years exceeded, by similar volumes of imports from Turkmenistan (see graph). (CONTINUED - 1440 WORDS)