Natural Gas Exports to Iraq and Turkey Down 75%

Natural gas exports to Iraq and Turkey has reduced by 46 million cubic meters per day, said Hamid Hosseini, the head of board of directors at Iranian Oil, Gas and Petrochemical Products Exporters’ Association.

“Unprecedented cold spell and massive rise in domestic gas consumption have forced the National Iranian Gas Company to cut natural gas exports to Iraq and Turkey by at least 75%,” ILNA also quoted Hosseini as saying.

As per contracts between NIGC and the two neighbors, close to 60 mcm of gas per day should be sold to Iraq and Turkey that has now dwindled to less than 14 mcm/d, he added.

“Although both neighbors have expressed their dissatisfaction with the substantial decrease, the NIGC had no other choices and this is not the first time that the company has reduced its exports in cold winter days.”

 

Natural gas exports to Iraq

Iraq has imported $3.5 billion worth of natural gas from Iran since March, 2022 and it has not found a better option to replace Iran’s natural gas, he added.

“The Arab state owes about $10 billion to Iran.”

The war-torn nation has lost close to 7,500 megawatts of its power generation capacity due to the natural gas cut from Iran. Moreover, imported electricity generating equipment, especially transformers, from China and Turkey have turned out to be of very quality compared to those produced by Iranian manufactures.

 

Iran natural gas exports to Turkey

According to the official, negotiations between NIGC and Botas, Turkey’s state oil and gas company, to renew a natural gas contract that expires in 2026, are underway.

“As gas consumption is rising in Turkey, we are hopeful that it renews its agreement with Iran.”

Based on a 25-year deal, NIGC started selling gas to Turkey in 2001 and is the second largest gas supplier to the neighboring state after Russia.

Turkey has let its private sector play a more active role in importing gas and signing contracts with suppliers and “I believe we should follow the same policy sooner rather than later,” he added.

Oil and gas sectors in Iran have long been monopolized by the government.

Put it simply, all oil- and gas-related deals are tightly controlled by state-run companies and the private sector is not allowed to conclude any upstream agreements.

NIGC uses the ninth Iran Gas Trunkline (IGAT-9), stretching over 2,000 km, to transfer 30 million cubic meters of gas from Asalouyeh, Bushehr Province, to Turkey.

Published: Feb 1, 2023

 

 

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