Russia's proposed gas pipeline to Iran

The Russian President Vladimir Putin announced on Friday plans to build a pipeline to Iran that will eventually transport up to 55 billion cubic meters (bcms) of gas per year into the West Asian nation.

Here are some background details about the cooperation between Iran, Russia and the gas sector.

Previous Plans on Russian Gas Sales to Iran

Iran is the second largest gas producer in the world after Russia. However, U.S. sanctions are preventing access to technology as well as slowing down gas exports. In July 2022, the National Iranian Oil Company and Russian energy giant Gazprom agreed to a Memorandum of Understanding worth about $40 billion.

Gazprom has pledged to assist NIOC with the development of six oil and gas fields, including Kish and North Pars. Gazprom planned to also be involved in the completion and construction of LNG projects, as well as gas export pipelines.

NEW PLANS

Gazprom signed a Memorandum of Understanding with the National Iranian Gas Company in June 2024 regarding the supply of Russian pipeline gas to Iran.

The 55 bcm per year target announced by Putin Friday is roughly the same as the Nord Stream 1 damaged pipeline exported from Russia to Germany.

The initial gas supplies from Russia to Iran could total up to 2 bcm each year. Interfax reported that Russian Energy Minister Sergei Tsivilev said the route could transit through Azerbaijan.

IRAN-PAKISTAN GIGA PIPELINE

The Iran-Pakistan pipeline could be included in future plans, as Russia had long planned to take part in the project. However, it has been stalled by sanctions against Tehran and political disputes.

India initially participated in the project, but withdrew after Washington's pressure in 2009. The pipeline plans were also complicated by a political standoff between India, Pakistan and the United States. (Reporting and editing by Emelia Sithole Matarise; Reporting by Vladimir Soldatkin)

(source: Reuters)