Iran has the world’s largest gas reserves but until now has barely been a net exporter. This may soon change as it looks to expand its gas-for-electricity swap arrangement with neighboring Armenia.

In the wake of last month’s lifting of nuclear sanctions Iran has prioritized stalled projects to increase electricity generation and petrochemicals output (see p10). But plans to increase gas shipments to Armenia fivefold to around 2 bcm/year would form a key additional element of post-sanctions investment, while further strengthening bilateral relations. Aside from Iraq, Armenia is the neighbor with which Iran gets on best. (CONTINUED - 1013 WORDS)