Page 33 - IRANRptApr19

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Turkey is reportedly planning to raise its imports of Iranian natural gas despite the US sanctions regime aimed at Tehran and countries and businesses that continue to do business with the Iranians.
A senior Iranian official told Iranian state news agency IRNA on March 25 that additional gas orders were expected from Turkey. Nato member Turkey has no substantial hydrocarbon reserves of its own, making it dependent on imports for almost all of its energy needs. Iran, next door, sits on the world’s second largest gas reserves and fourth largest oil reserves. Nearly 40% of Turkey’s electricity is from gas-fired plants and Ankara has previously made it plain to Washington it would be impractical to stop importing Iranian gas.
“Turkey has requested the purchase of more Iranian natural gas,” the head of Iran’s National Gas Company (IGC), Hassan Montazer Torbati, was cited as saying by the news agency.
“Based on previous agreements, Iran is currently increasing gas exports to a number of countries including Turkey, Iraq, Armenia and Azerbaijan,” he added.
Iraq and Armenia are two other neighbours of Iran who are only very grudgingly giving up on any business with the Iranians under US sanctions pressure. Azerbaijan has had less to say on the matter but has nevertheless previously said that Iran is a brother nation that will enjoy its support in opposing the US sanctions policy, aimed at strangling the Iranian economy to the point that major changes in Middle East policy and activities—such as support for various proxy militias in conflict zones—are forced on Tehran.
Last week, the US granted Iraq a second three-month sanctions waiver allowing it to import Iranian gas. The first waiver expired on March 18.
The US State Department said it issued the second exemption to help prevent a destabilisation of Iraq. It has relied on Iranian gas and electricity supplies to help it deal with shortages that have provoked anti-government protests in some areas.
Iranian Oil Minister Bijan Zanganeh said on March 16 that talks with China National Petroleum Corp (CNPC) were continuing as regards its suspended involvement in developing phase 11 of South Pars, the world’s largest gas field which Iran shares with Qatar.
“Negotiations are ongoing. A senior delegation from China is due to come to Iran for talks. They have promised to come to Iran soon,” Zanganeh said, according to semi-official news agency ISNA.
CNPC suspended its involvement in phase 11 last year while under pressure from US officials who said Washington’s sanctions should preclude Beijing from continuing with the multi-billion-dollar project. Analysts said the Chinese were most likely using their decision-making on the South Pars investment in the Persian Gulf as a bargaining chip with the Trump administration in ongoing talks to resolve the US-China trade war.
Zanganeh was speaking at a press conference ahead of the inauguration on March 17 of four development phases at South Pars by Iran’s President Hassan Rouhani.
33 IRAN Country Report April 2019 www.intellinews.com