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Iran May Rent Pipelines to Export Gas to EU

Iran May Rent Pipelines to Export Gas to EU

Iran may rent regional pipelines abroad instead of construction new routes to export gas to the EU, Alireza Kameli, head of the National Iranian Gas Company, said.

Kameli said one of the feasible ways of delivering gas to the EU is the construction of LNG plants in Iran, but aside from that, Iran can consider the pipeline export of gas, Mehr reported Sept. 14. Currently, construction of the 3,500-km Southern Gas Corridor (SCG) from Azerbaijan to Italy is underway. SCG is expected to transit 16 billion cubic meters per year (bcm/y) of Shah Deniz field’s gas to Turkey and Europe by 2021.

Iran has already announced that it is eyeing gas deliveries to the EU through SGC, though it may be not beneficial. There is more than 5,000-km distance between Iran’s South Pars gas field and Italy, which is the destination of SGC. There is a significant amount of idle capacity in SGC, which can be filled with Iranian gas. However, the gas flow from Azerbaijan to the EU is expected to reach 24 bcm/y by 2025 and 31 bcm/y in early 2030s.

Source: trend