Iran to Become A Gas Hub in Region: Report

Iran is seeking to create a gas hub in cooperation with its Eurasian trade partners, Oil Minister Javad Owji announced on Wednesday. The move is part of Tehran’s efforts to strengthen regional cooperation and enhance its position in the global energy market.

Iran is one of the largest oil and gas producers in the world, selling most of its energy to Asian markets despite the threat of US secondary sanctions. The new project is planned for the Asaluyeh region of the southern Bushehr province, RT said.

“Having 33 trillion cubic meters of gas reserves and thanks to the cooperation of Turkmenistan, Russia and Qatar, we are trying to become a gas hub,” the minister told reporters, insisting that the conditions were in place to achieve that goal.

The statement comes as Tehran has stepped up energy purchases from neighboring Turkmenistan, with the capacity to import between 40 and 50 million cubic meters of gas daily. Iran’s major gas fields are concentrated in the south, necessitating imports from its northern neighbor, particularly in the winter.

Iran has also strengthened energy cooperation with Russia, which, according to Owji, could assist in the Islamic Republic’s energy hub ambitions. The two countries have joint investments in exploration and production, technology swap agreements, and a deal to jointly build oil pipelines from Iran to Oman and Pakistan. Last month, Tehran and Moscow sealed two major cooperation agreements and eight memoranda of understanding covering everything from energy and technology to the creation of a joint market.

Russia’s Deputy Prime Minister Alexander Novak said recently that Iran and Russia are negotiating to create an electronic gas platform in northern Iran.

According to Novak, Iran and Russia will develop their cooperation in the field of energy, which is why Russia’s giant Gasprom is pursuing the development of Kish and South Pars joint gas fields.