Iran in Talks With Oman for Exporting Gas

IRAN NEWS ECONOMIC DESK

TEHRAN – Managing Director of National Iranian Gas Company (NIGC) says Iran is in talks with Oman to export gas to this country while Iraqi Kurdistan is after buying gas from Iran.

Speaking to ILNA, Hassan Montazer Torbati said that the current condition of long-term gas contracts would totally change in the post-Coronavirus era, adding that Iraqi Kurdistan demands Iran’s gas while talks with Oman for exporting gas to this Arab country are underway.

On the export of gas to Turkey and Turkey’s delay in resumption of importing gas from Iran, he said that exports of gas to Turkey have halted since March 31 after the pipeline was exploded and Turkish company Botas has announced that repairing the pipeline would take longer because of the outbreak of Coronavirus. He reiterated that Iran has taken legal actions and has informed the Turkish company it would not accept longer period for repairing the pipeline and has warned.

He admitted that in the post-Coronavirus era, the long-term gas contracts will drastically change and the prices would be affected by the oil price. He said it is expected the next contracts to be based on new formula.

On renewing gas contract with Turkey after 2025, Montazer Torbati noted that talks will start with Turkey soon after the Coronavirus problem is resolved.

He admitted that gas market in Turkey will be decisive for future contract but Iran due to its capability can be a safe gas provider for Turkey.

On Iran’s gas to Iraq, he said Iran’s gas exports to Iraq go on according to the schedule but recent reports show that the U.S. is increasing pressure on Iraq to find a replacement for its gas imports from Iran but gas contracts due to the primary investments cannot change easily and it will take time but Iran will do its best to protect its market in Iraq.

Reacting to probable exports of gas from Iraqi Kurdistan to Iraq and neighboring states, Montazer Torbati said that Iraqi Kurdistan has signed contracts for production of gas and constructing the gas pipeline for exports to Turkey but there have been no significant progress, so some projects have been stopped or have been slowed down.

He noted that there is a doubt over Iraqi Kurdistan’s capability for exports, adding that the region has asked for Iran’s gas due shortages for domestic consumption.

On exports to Oman, he said the 42-inch pipeline between Minab-Sirik-Jask has been designed for exports of gas or domestic consumption, adding that tenders for providing necessary equipment are underway.

Montazer Torbati reiterated that talks with Oman are underway for exports of gas to this friendly country.