CGES meeting told Iran primed to export gas when sanctions ease

Sept. 25, 2001
Possible relaxation of US sanctions against Iran as part of present anti-terrorist discussions could lead to that country's emergence as one of the world's main exporters of natural gas. A Center for Global Energy Studies meeting was told that Iran may need the help of US companies.

By the OGJ Online Staff

LONDON, Sept. 25 -- Possible relaxation of US sanctions against Iran as part of present anti-terrorist discussions could lead to that country's emergence as one of the world's main exporters of natural gas, according to an analyst.

Manouchehr Takin, with the Center for Global Energy Studies, told a symposium on Middle Eastern gas prospects that Iran is determined to export its gas, but may need the help of US companies.

"Gas exports have been agreed as a policy. Iran's huge gas reserves are more than sufficient for domestic consumption, injection into oil fields, and also for exports for the foreseeable future.

"With the delay in initiating gas export negotiations, other exporters or potential exporters in the region have moved ahead and new gas discoveries have modified the gas export potential. Iran is a newcomer to the Middle East's gas export schemes, and it is facing tough competition from the established exporters. Starting a greenfield LNG project is a challenge."

Takin said the Iranian authorities recognized the need for outside participation and investment.

He said US economic sanctions against Iran, which include the threat of secondary sanctions on non-US companies investing in Iran's hydrocarbon sector, have reduced the potential competition among foreign investors.

He said Iranian reserves are 940 tcf, compared to estimated world reserves of 5,300 tcf, making it the second largest reserves holder after Russia. Slightly over half of the reserves are offshore, and unlike those in most other Middle East countries, 74% are in non-associated fields.