The Cradle
Iran to purchase, swap Russia’s gas through Azerbaijan
Iran will receive the delivery of some 15 MCM per day of Russian gas through pipelines from Azerbaijan
By News Desk - September 20 2022
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(Photo Credit: BP)

Iran is set to import Russian gas through pipelines from Azerbaijan under contracts agreed upon in a significant deal between Tehran and Moscow two months ago, according to a report published in the local media.

According to the Fars News Agency, the Iranian Oil Ministry announced on 19 September that a gas import and swap deal between Iran and Russia will soon be activated, provisioning 9 million and 600 thousand cubic meters per day of Russian gas through the Republic of Azerbaijan.

Two months ago, Iran signed a deal worth $40 billion with Russia’s Gazprom to develop seven oil and gas fields and complete other oil projects near the Persian Gulf. Iranian media revealed Tehran’s intention to import overload quantities of Russian gas.

Additionally, the deal includes establishing a pipeline to export Iranian gas to Pakistan and the Sultanate of Oman, as well as completing several liquefied natural gas production projects in the country.

Reports suggested that Iran could also receive amounts of Russian gas from Turkmenistan for swap delivery to Turkey and Iraq.

To strengthen its domestic supply network in the densely populated regions in the northwest, Iran will use the 15 million cubic meters (MCM) per day of gas supply from Russia, while exporting increased amounts of natural gas to Turkey and Iraq through pipelines in the western area of the country.

Iran currently consumes gas from Turkmenistan in its northeastern regions and delivers the same amount of gas to Azerbaijan.

The Iranian Agency’s report said that Iran would export nearly 6 million cubic meters of liquefied natural gas (LNG) daily to Russian customers in the south of the Islamic republic, adding that Gazprom will be a partner in the monetization process.

Earlier the same day, a delegation of Russian officials, including several company representatives, met their Iranian counterparts on a three-day business visit to strengthen economic ties between the two countries.

Azerbaijan and its neighbor Armenia have exchanged responsibility for the latest border shelling. Azeri officials said their country was responding to Armenian attacks while Armenian authorities accused Baku of unprovoked aggression.

In the meantime, both former Soviet countries are on a cease-fire deal that took effect on 13 September, after the outbreak of violence.