{"id":312613,"date":"2023-10-15T18:46:04","date_gmt":"2023-10-15T17:46:04","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=312613"},"modified":"2023-10-15T18:46:04","modified_gmt":"2023-10-15T17:46:04","slug":"can-irans-regime-solve-its-gas-crisis","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/can-irans-regime-solve-its-gas-crisis\/","title":{"rendered":"Can Iran\u2019s Regime Solve Its Gas Crisis?"},"content":{"rendered":"

\"iran-natrual-gas-refinery\"<\/p>\n

During a three-day visit by Iranian regime Minister of Petroleum Javad Owji<\/a> to Moscow for the “Russian Energy Week” conference, Russian President Vladimir Putin disclosed that “Tehran is in talks with Moscow to buy gas.”<\/p>\n

Earlier, an agreement was signed for the regime to purchase gas from Russia during a visit by a Gazprom delegation to Iran in July last year. This visit also saw the signing of several other agreements in various energy sectors in Iran.<\/p>\n

Nevertheless, despite Tehran’s announcement of “the largest oil and gas agreements in the country’s history worth $40 billion<\/a>,” Russia has not formalized any of these memorandums into contracts. Currently, Russia is only negotiating to sell its surplus gas to Iran.<\/p>\n

Iran, despite holding the world’s second-largest natural gas reserves, finds itself in the paradoxical position of needing to import gas. Decades of economic sanctions, a lack of investment, outdated extraction techniques, and a growing domestic demand for energy have strained the country’s gas production capabilities. Most importantly, mismanagement and corruption have hindered the development of the necessary infrastructure to harness and distribute its gas wealth efficiently.<\/p>\n

Approximately a decade ago, the regime signed numerous oil and gas memorandums<\/a> with several Russian companies, none of which were implemented.<\/p>\n

Before the military invasion of Ukraine in February last year, Russia annually exported over 17 billion cubic meters of LNG to the European Union and an additional 133 billion cubic meters of natural gas via pipelines. These figures constituted 68% of Russia’s total gas exports in 2021.<\/p>\n

Last year, Russia’s gas exports to the European Union via pipelines fell to less than half, and the European Union plans to become entirely independent of Russian gas by the end of this decade.<\/p>\n

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Can Iran Replace Russia in the Global Gas Market?https:\/\/t.co\/OcuDoRvjL8<\/a><\/p>\n

— NCRI-FAC (@iran_policy) May 11, 2022<\/a><\/p><\/blockquote>\n