Iran plans to expand further its gas exports eastwards and westwards, a development which should trigger fresh bickering with Russia over the energy supply of Europe.
Ambassador and general director of the IPIS Institute in Tehran Seyed Rasoul Mosavi told the 1st SE Europe Energy Dialogue organized by the Institute of Energy in Thessaloniki, that Iran plans more exports to Pakistan and India but in Europe as well, mainly through the Nabucco pipeline, and the Trans-Adriatic- Pipeline (TAP).
“The elimination of Iran’s role in energy matters means the prevail of Gazprom’s monopoly,” Mr Mosavi said, adding that if Europe wants to diversify its energy sources away from Russia should turn to Iranian gas.
Currently, Iran has the second largest gas deposits in the world of 15% trailing Russia with 31%. Iran’s gas deposits are estimated at 28 trillion cubic metres.
On the other hand, Azerbaijan which is seen as an alternative solution, has limited gas reserves at least for the next five years, said Helge Billington of Statoil which operates the huge Shah-Deniz gas field in Azerbaijan. Mr Billington said that the field will provide export quantities beyond 2012 when they are estimated at 12 bcm/a.
Both Mr Mosavi and Dr Narsi Ghorban, director of research of the International Institute for Caspian Studies in Tehran, referred to the problems that Iranian government is facing to expand its exports. Dr Ghorban said that the high domestic energy consumption rates along with the US sanctions deter to a large degree the attraction of foreign investments.
Dr Ghorban said that Iran also plans LNG exports while the total size of the energy investments by Tehran are estimated at $200 billion, “a development which is expected to offer significant opportunities to international companies,” he said.
Despite US sanctions, Iran has managed to attract a large number of foreign investments by international oil companies.