BAKU, Azerbaijan, February 19. Iran has finalized the framework of its gas import agreement with Russia, Saeed Tavakoli, Deputy Minister of Petroleum and CEO of the National Iranian Gas Company (NIGC), told reporters, Trend reports.
Tavakoli stated that all technical aspects under the memorandum of understanding between Iran and Russia have been completed.
According to him, only two issues remain unresolved: the price of the gas to be imported from Russia and Iran’s payment mechanism.
“A decision on these two matters must be made at a high level within the country,” he stated.
The company official noted that numerous negotiations on the contract’s details and technical issues were held during the latest session of the Iran-Russia Joint Economic Commission.
Tavakoli added that the Iranian Oil Ministry prioritizes ensuring full gas supply to households and commercial facilities during the colder months of the year. As a result, gas shortages sometimes occur at certain factories and power plants.
“However, if Iran imports gas from Russia under this contract, the gas in question will be directed to production facilities,” he said.
The deputy minister also addressed the issue of importing gas from the northern direction, noting that most of Iran’s gas reserves are located in the south and coastal areas. Imports from northern neighboring countries could help balance the national gas network, reduce transmission pressure, and improve consumption management.
If a final agreement is reached, Iran plans in the initial phase to import up to 55 billion cubic meters of gas annually from Russia.
On June 26, 2024, a document on the transportation of Russian gas to Iran was signed between Majid Chegeni, Chief Executive Officer of NIGC, and Alexei Miller, Chief Executive Officer of Gazprom.
Iran holds approximately 34 trillion cubic meters of gas reserves, ranking second globally in terms of proven reserves. The country currently operates 22 gas fields and produces about 1.07 billion cubic meters of rich gas per day.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel