Iran Plans to Export 10% of Gas Production, Eyes European Market

TEHRAN (Iran News) Saeed Tavakoli, Managing Director of NIGC, addressed concerns regarding Iran’s ability to meet both domestic consumption and export commitments. He emphasized that while the primary priority is ensuring sufficient gas supply for residential, commercial, and small-scale industrial sectors, the company is also making long-term plans to engage in exports. “We are in discussions and negotiations to establish export agreements, particularly given the ongoing projects and the expected increase in production across various sectors,” Tavakoli said.

He highlighted that if gas production aligns with the objectives outlined in Iran’s Seventh Development Plan and energy consumption is managed efficiently, the country could position itself as a regional energy hub. He also noted that optimizing energy use would enable Iran to allocate more gas for export.

Tavakoli reiterated that exporting a minimum of 10% of the country’s gas output is a strategic necessity. He also confirmed that the European gas market is a key target for Iran’s export ambitions. However, he stressed that export plans depend on efficient domestic consumption, in line with energy efficiency guidelines outlined in national strategic documents. “The more we enhance energy efficiency, the more we can increase production, boost exports, and secure gas supplies for power plants,” he stated.

Beyond simple production and export, he described gas trade as a broader concept that includes various mechanisms such as swap deals, imports, and exports. “Being engaged in gas trade means having multiple mechanisms for transferring gas, not just focusing on production and direct exports,” he added.

Regarding Iran’s ability to fulfill its export commitments amid high domestic demand, especially in winter, Tavakoli acknowledged occasional deviations from contractual obligations. “During winter, we sometimes exceed our contractual consumption capacity, prioritizing domestic consumers. While we strive to fulfill our obligations within the framework of agreements, actual export volumes may fluctuate depending on domestic demand,” he explained. He also noted that any shortfall in contracted exports comes with financial implications, as specified in agreements with international buyers.

He also addressed Iran’s gas exports to Iraq, confirming that deliveries are proceeding according to contractual commitments. He stated that Iraq has made partial payments toward its outstanding gas debts and efforts are underway to recover the remaining dues.

On the issue of Iran’s gas export agreement with Turkey, he remarked that negotiations for the contract’s renewal are ongoing. “Turkey still has time before making a final decision, and preliminary discussions are in progress,” he said.

Iran’s ambitious gas export strategy is part of a broader effort to enhance its role in the global energy market. However, challenges such as domestic consumption management, infrastructure expansion, and international trade dynamics will play a crucial role in determining the success of these plans.