Page 48 - IRANRptJun22

Shell and Iran LNG with a capacity of 10.8mn tpy. Most of the work on the latest project had been completed, but the resumption of US sanctions in 2018 meant that the German Linde was unable to deliver equipment to Iran.
As noted by Argus, in 2019 the country produced 244bn cubic metres of gas, but with high consumption, only 20 bcm was exported, which went to Turkey and Iraq.
Russian Foreign Minister Sergei Lavrov said Moscow had received US written assurances that sanctions would not apply to Russia's co-operation with Iran and was in favour of resuming the deal as soon as possible.
9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Iranian gas flow to Azerbaijan under gas swap with Turkmenistan to ‘at least double’
Iran struggles to sell crude now at anchor in Asia
An agreement to at least double the volume of gas delivered to Azerbaijan through Iranian pipelines under a gas swap deal involving Turkmenistan has been struck, Iranian state news agency IRNA has reported.
The deal could take the volume from 1.5bn cubic metres (bcm) to 3 bcm or more.
Azerbaijani Economy Minister Mikayil Jabbarov and Iranian Oil Minister Javad Owji were reported as signing a memorandum of understanding for the volume boost on June 3 in Baku.
Gas supplies from Iran to Azerbaijan under the gas swap arrangement with Turkmenistan began in January, according to a trilateral agreement signed by Azerbaijan, Iran and Turkmenistan in Ashgabat last November.
Under the scheme, Turkmenistan supplies 5-6mn cubic metres per day of gas to Iran’s northeastern regions, while Iran supplies the same amount to Azerbaijan on its northwestern border.
An estimated 40mn barrels of Iranian crude oil is currently stuck offshore in ports around Asia looking for a buyer.
As prices of Russian crude have fallen in the weeks following Moscow’s invasion of Ukraine, more and more oil cargoes from Iran have found themselves without end destinations.
The majority of these cargoes fell foul of Asian markets seeking to save money on cheaper, better-quality Russian imports. In the three months since the outbreak of war in Ukraine, sanctions by the US and other Western countries had left Russia looking for buyers for its crude.
But with India, and increasingly China, seeking to benefit from Russia’s current focus on Asia, one casualty has been Iran.
In the months leading up to the February 24 invasion, Iran had been making headway in increasing its crude sales to China. In March, China bought between 700,000 and 900,000 barrels per day (bpd), illustrating its growing importance as a buyer for Iranian oil.
But now these efforts by Iran to step up crude exports to China have stalled, with sales in April thought to be 200,000-250,000 bpd down on March. As soon
48 IRAN Country Report June 2022 www.intellinews.com