Iran Collects Iraq Gas Debt
CEO of National Iranian Gas Company (NIGC) Hassan Montazer Torbati has said Iran continues to export gas to neighboring Iraq. He also said that Iran had been compensated for all its gas exports to Iraq, noting that Iraq had settled its debt in euros. Montazer Torbati said Iran could process 800 mcm/d of gas. Citing gas recovery from new phases of the South Pars gas field, he said Iran had reached a balanced status in gas production and consumption. Therefore, he said, Iran was a reliable gas supplier. He underlined Iran’s geographical position for exporting gas to Iraq, saying: “Since we currently have necessary tools in Iran to export gas, there is nothing worrying for exporting gas to neighboring countries.” “Furthermore,” he said, “the proximity of destination nations for gas exports prioritizes gas exports via pipeline.”
He said: “At present, in light of Iran’s construction of the bulk of pipeline meant to carry gas to Pakistan, the infrastructure for exporting gas to this country is ready.” “But on the Pakistani side, the government and the private sector should tell us whether or not they want to receive gas from Iran,” he added. “We hope that the [Pakistani] private sector would make necessary investments for receiving gas from Iran. However, this issue has yet to be raised formally on the part of Pakistan,” the NIGC chief said. He expressed hope that Iran’s gas exports to Pakistan would be finalized because Iran is determined to pump gas to its neighboring state. Referring to the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, Montazer Torbati said: “In case TAPI crosses Iran, it would be more suitable and more secure for all nations engaged in it both economically and in terms of security.” “Iran has a quicker access route and given the form of Iran’s gas transmission network, there would be no need for full implementation of the pipeline in the early years of the operation of the project as Iran is ready to pump this gas by relying on its own facilities,” he said.No Need for Gas ImportsMontazer Torbati also said the Iran-Turkmenistan gas dispute had been “referred to arbitration and we are following up on it”. “We had to import gas from Turkmenistan due to serious gas shortage in northern Iran in previous years, but today this dependence is gone and we have no problem with gas supply to northern areas in cold seasons,” he said.“However, we can establish good relations with gas-rich Turkmenistan and broaden these ties,” he added. Montazer Torbati said Iran’s private companies were swapping Turkmenistan’s gas. “Of course, we have capacity to swap more gas. We can swap 35 mcm/d to 40 mcm/d of gas,” said Montazer Torbati. On liquefied petroleum gas (LPG) exports, he said: “Our LPG production and exports may fluctuate during various months; however, this product is still being loaded and exported. Furthermore, we are seeking to preserve our markets in this sector.” Regarding gas exports to Armenia, he said: “Gas exports to this country are under way based on the terms of the agreement and we are able to lift gas exports to this country.”No Problem with Gas ExportsAsked about a would-be Turkmenistan-Iran-Azerbaijan-Europe gas pipeline, Montazer Torbati said: “Throughout gas exports, both the capacity of gas production in the country and destination markets are envisaged.” “As far as gas production and domestic consumption balance is concerned, Iran is currently in desirable conditions. That is whey European nations have concluded that Iran would have no problem with its domestic gas supply,” he said. “But potential European buyers of Iran’s gas can determine the gas export route.”800mcm/d Gas ProcessingIn 2017, power plants accounted for 37%, household sector 25%, industries 30% and compressed natural gas (CNG) 4% of gas consumption. CNG consumption is estimated at 20 mcm/d to 23 mcm/d, which is a good alternative to gasoline. CNG consumption has been instrumental in curbing gasoline consumption and Iran’s gasoline self-sufficiency.Montazer Torbati said Iran’s gas processing stood at 800 mcm/d, adding: “Development of domestic gas supply in Iran will be over in coming years and we will then shift towards gathering associated gas, supplying feedstock for industries and exports.”Noting that the share of household sector among consumers of gas is such that sufficient time has been provided for gas supply to industries and power plants, he said: “We have been increasing gas production level in order to meet consumption, but in the coming years we need to manage the gas consumption of the country in order to generate higher value-added from gas.”750mcm/d Gas TransmissionMontazer Torbati said Iran’s gas transmission capacity was more than 750 mcm/d. He added: “Given the development of gas transmission pipelines, we are no longer worried about production hike.”“We will be able to transmit as much gas as we will be producing in Assaluyeh. Furthermore, the gas transmission network is resilient enough and we are not worried about connections,” he said. The official said that gas had been recently injected into the Iran Gas Trunkline 9 (IGAT-9). “Therefore, the gas industry is increasing its records so that we would comfortably produce and transmit gas,” he added.Montazer Torbati said liquid fuel had been used as feedstock of power plants in recent years, adding that gas supply to power plants would have soared to 70 bcm by the end of the current calendar year.