Page 7 - MEOG Week 31 2022

MEOG PIPELINES & TRANSPORT MEOG

Iran aims to team up with Russia

for Oman, Pakistan gas pipe

IRAN IRAN intends to implement a $60bn project need of both the Iranians and the Russians to
to export gas to both Oman and Pakistan with sidestep Western sanctions now a driving factor
Russia, official energy news agency SHANA in bilateral economic talks.
reported on July 27. “Given the negotiations with the Russian
A deal for the undersea pipeline part of the state corporation Gazprom and the memoran-
project, which would transit gas to Oman’s dum concluded with it, it was decided to jointly
Musandam province at a minimum rate of implement a project to supply gas to Oman and
28mn cubic metres per day, was signed with Pakistan,” Owji was quoted as saying.
the Omanis back in 2013. The project was also Gazprom and the Iranian National Oil Corp.
configured to encompass a second pipeline that (NIOC) signed a memorandum of under-
would cross Iran’s southern border into Pakistan. standing on cooperation during Russian leader
The project failed to progress but an agree- Vladimir Putin’s recent visit to Tehran.
ment to revive it was reached in May when It covers projects in Iran estimated at around
Iranian Oil Minister Javad Owji visited Mus- $40bn, including the development of the Kish
cat. It was then placed on hold due to cost and North Pars gas fields, the pressurisation of
disagreements. the South Pars field, the development of six oil
Owji made the announcement that Russia fields, the completion of liquefied natural gas
was to be brought into the project amid a tight- (LNG) projects, gas and derivatives swaps, the
ening of trade and investment and political construction of gas export pipelines and scien-
relations between Tehran and Moscow, with the tific and technical cooperation.™

PRICES & PERFORMANCE

Iran reports booming gas

and oil export earnings

IRAN IRAN’S gas export earnings for the first four former US president Donald Trump introduced
months of the Persian calendar year (March 21 saying the intention was to drive down Iranian
to July 21) reached nearly $4bn, the semi-official crude exports to zero. The fact that China has
ISNA news agency quoted Oil Minister Javad remained a crucial market to Tehran for below-
Owji as saying on July 27. the-radar oil sales is well documented.
“We have collected close to $4 billion of gas Iran mainly exports gas to Turkey and Iraq.
exports for the first four months of the year, Sales to Iraq have been hampered by frequent
which is nearly as much as what was collected rows over unpaid bills but ahead of the summer
for the entire previous year,” Owji was quoted as this year, Baghdad recommitted to paying off the
saying. debts and said it would switch to monthly pay-
A day previously, economy minister Ehsan ments to ensure more regular remuneration.
Khandouzi told a press briefing that the Islamic Iran is sometimes short of gas to export.
Republic’s income from oil and condensate Though it sits on the world’s second largest gas
exports in the first four months of the Iranian reserves, sanctions over the years have hindered
year was higher by 580% y/y. the technological investments that would be
“Due to the increase in oil exports and our required in Iranian gas fields to secure sufficient
new budget’s currency conversion rate, we saw flows for domestic consumption demands and
a 580% increase in the treasury’s income from export ambitions.
the export of oil and condensate in the first four Officials dealing with rising discontent and
months of this year,” Khandouzi said. protests in Iranian society over economic hard-
The Iranian government says it has devised ship – annual inflation lately passed the 50%
sanction-proofed ways to repatriate funds to the mark while the Iranian rial very much remains
treasury from earlier energy exports, while offi- on the ropes – may hope some of the extra
cials claim to have boosted oil exports despite US energy income will translate into rising prosper-
sanctions still in place that Washington under ity among the population at large.™

Week 31 03•August•2022 www. NEWSBASE .com P7