Iran, Tehran, April 2 / Trend , D.Ibrahimova, T.Jafarov/
Iranian Narkangan Gas to Liquid International Company Executive Director and International Institute for Caspian Studies Director Narsi Gurban especially for Trend :
In principle any successful pipeline, which crosses different countries must have adequate supply of gas, demand for this gas, a secure transit route and very strong Financial and Legal framework.
With regards to the Iranian gas export to Europe, the above conditions are as follows;
Iranian gas reserves currently around 30,000 Billion Cubic Meters (BCM) is adequate for such undertaking if proper gas production investment is in place. 30 BCM of gas to Europe for 20 years require 600 BCM of gas, which is around 2% of the current reserves. So there is adequate gas in theory.
However, in practice, Iran's priorities with regards to the gas produced are domestic use, which includes local consumption, generation of electricity, gas injection in the oil fields, petrochemicals and gas based industries. Consequently only if gas production capacity increases
considerably there will be gas available for export.
The Demand in Europe for additional gas exists and there is a political will to get this gas from different sources. However, if due to any political reason, Europe does not want to buy Iranian gas then there will be no pipeline from Iran to Europe in any form.
Secure transit routs are defined on the basis of political and strategic realities of the time. Nabucco pipeline passes through Turkey and Balkan countries. Persian Pipeline goes to Iraq and Syria and through Mediterranean Sea to Europe. These are alternative routs that have to be agreed by the buyer, seller and the transit countries.
At present there is no strong financial and legal commitment for any pipeline from this region to Europe. If Iran produces enough gas for export there will be potential for Persian Pipeline and Nabucco. Without adequate investment for gas production export of gas from Iran will be delayed.
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