Majid Chegeni, who made the announcement ahead of the Government Week (August 24-30), added Iran’s natural gas and liquefied petroleum gas (LPG) have jumped 16 and 22 percent since the beginning of the current Iranian calendar year (March 21, 2023), respectively.

According to the latest OPEC Annual Statistical Bulletin (ASB), he continued, Iran’s natural gas exports hit 18.43 and 18.79 billion cubic meters (bcm) in 2021 and 2022, respectively, showing an over 60 percent growth when compared to the figure in 2020.

The hikes in gas exports during the past two years were recorded while Iran faced gas imbalance in winter 2021, mentioned Chegeni, adding the country, however, not only exported gas as stipulated in the contracts, but also boosted their annual volumes.

Touching upon Europe’s energy need, he said European states have held talks with Iran on importing gas through Türkiye, adding their negotiations have yet to come to fruition.

Contracts with neighbors

Chegeni, who is also the managing director of the National Iranian Gas Company (NIGC), said the extension of the contract on exporting gas to Iraq will be finalized soon.

Turkey is also willing to extend its gas contract with Iran, he stated, adding gas talks on exports to Oman, revival of the contract with Pakistan, and trade with Russia are ongoing.

Shifting to a gas swap deal with Turkmenistan, the NIGC CEO said the volume of gas Iran receives from this country has soared to eight million cubic meters per day from 4.5 mcm/d following the settlement of Iran’s debt in three instalments.  

Iran-Armenia deal extended

Tehran and Yerevan extended their agreement until 2030 under which Iran exports more natural gas to Armenia in exchange for electricity, Chegeni said.

The contract was signed in a ceremony attended by Chegeni, Iranian Ambassador to Yerevan Mehdi Sobhani, Yerevan Thermal Power Plant CEO Aram Ghazaryan, and Armenia’s Minister of Territorial Administration and Infrastructures Gnel Sanosyan.

Under the extended deal, the ratio of bartering gas with electricity was amended in favor of NIGC, mentioned Iran’s deputy oil minister.

The initial agreement on the new contract was reached during Armenian Prime Minister Nikol Pashinyan’s visit to Tehran in November 2022, and the document was finalized on August 10.

Iran’s pipeline for exporting gas to Armenia has an annual transmission capacity of over one billion cubic meters (bcm).