Iran willing to sell Europe cheap gas, having no pipelines to transport it.

Iran sells to Europe cheap gas, having no pipelines to transport it. (Taz).

Iran intends to enter an unequal battle for the European gas markets – albeit without pipelines but with an attitude. Europe has promised to buy all the gas available amid falling local production and increasing gas demand. The European Union will attempt to solve the gas supply issue as soon as possible due to the potential rise in consumption since the Union is going to cease the old coal power plants, convert them to gas mode as of 2017.

Europe is a huge gas market.

I call this ‘an unequal battle’ as Iran is entering into serious competition, given that the Islamic Republic has a lot of gas but no pipelines to Europe by which to deliver this gas. The economic sanctions placed on Iran there may soon be lifted and with the largest proven gas reserves in the world amounting to some 1.2 trillion cubic feet; but since Iran has no pipelines enabling it to deliver its gas to the European market, the country by default falls behind in the gas race. But this does not seem to preoccupy Iran.

Deputy Oil Minister for International Affairs Amir Hossein Zamaninia told Iranian media in November that Tehran is ready to sell its gas to Europe even if it will not be viable economically. “That is due to the fact that we want to use economic relations to create some political cohesion,” Zamaninia said.

Evidently Iran wants to use its powerful gas reserves as a shield against new possible international sanctions since Zamaninia says “When economic relations grow, political disagreements diminish and that reduces the chances of having the sanctions brought back”. This is understandable. New sanctions are the last thing Iran needs at this time. 

The country needs new gas infrastructure and contracts as soon as possible. These kinds of statements are indications that Iran there is attempting to claim its own share of the gas market even though it would be unprofitable at first.

Incidentally, Saudi Arabia applies the same approaches but with oil. Fiscal breakeven price of Saudi Arabia is 60 dollars per barrel Brent. But Saudis are persistently gloomy about the oil production decreasing. In this regard Saudi Arabia has many competitors. If the Saudis decrease oil production to support the prices it is obvious they don’t expect the same from neighboring rival countries. Most likely one of the rival countries will quickly hold the Saudis oil market share. For Iran, by the way, the fiscal breakeven price is 78 dollars per barrel Brent.


"I see no economical reason of Iranian gas export to Europe now. If they want to invest, to build pipelines it should be kicked off right now while the oil prices are low. One way or another I see no Iranian gas in the European market within the next 8-10 years", - said a Caspian energy trader who asked to remain anonymous. Hmmm.....As i said many times before the EU would sell all human rights in exchange for cheap gas, that's why they backed the Iran deal.  Read the full story here.

'Human rights....Never heard of those' - Iran, Belgium sign comprehensive cooperation MoU.

'Human rights....Never heard of those' - Iran, Belgium sign comprehensive cooperation MoU. (Taz).

Iran and Belgium have signed a comprehensive cooperation MoU, according to which the two countries will expand their cooperation on bilateral, regional, and international issues, Iranian Foreign Minister Mohammad Javad Zarif said.

Zarif made the statement during a joint press conference with his Belgian counterpart, Didier Reynders here, in which they discussed views on various issues, including Iran’s nuclear program and the Syrian crisis, the Trend correspondent reported from Tehran November 9.

Regarding Iran’s attendance at the Syrian talks, he said since President Hassan Rouhani is scheduled to travel to Europe, though it is not clear at what level Iran will participate in the Syrian talks.

He noted that during the upcoming meeting, all sides are going to designate which are the terrorist groups now engaged in the Syrian conflict. “However, we believe it is clear what groups are terrorists,” he said.

Further, Zarif stressed that terrorists should not have access to oil and there needs to be an explanation of how they sell oil and make money.

He further commented on the Joint Comprehensive Plan of Action and said a document has been prepared on redesigning Iran’s Arak heavy water reactor.

Talks are still being held on how to sign the document, since not all P5+1 foreign ministers are in Vienna, the Iranian FM stated.

Reynders, for his part, said there is no military solution to the conflict in Yemen, urging the start of political talks to end the fighting there.

Reynders, who is leading a political and economic delegation to Iran, met President Hassan Rouhani before seeing Zarif.

During their meeting, he said Belgium is waiting for sanctions to be lifted in order to boost ties with the Islamic Republic.

The sanctions are to be lifted according to the JCPOA, which was reached between Iran and the 5+1 group, made up of the US, UK, France, Russia, China, and Germany, on July 14.

In 2005, before sanctions were tightened against Iran, Belgium was Iran’s 28^th largest trade partner. It exported some $733 million in goods to Iran and imported $74 million goods from Iran.


During the first five months of the current Iranian year (March 21 to August 22), however, Iran’s imports from Belgium were registered at $131.6 million, while exports hit $14.6 million. Hmmm......Human rights are for sale....just look at the Saudis in the UN.......Money can buy anything but honor.

Former US amb to Azerbaijan “Sending gas to Europe doesn’t make commercial sense for Iran”

After Iran 'used' the EU: “Sending gas to Europe doesn’t make commercial sense for Iran” (Taz).

Sending gas to Europe doesn’t make commercial sense for Iran, says Matthew Bryza, former US assistant secretary for South Caucasus and former US ambassador to Azerbaijan.

Speaking to Trend Oct. 19, Bryza, who is also the director of the Tallinn-based International Centre for Defense Studies, said there are countries all around Iran, such as UEA, Oman, and Kuwait, which need gas.

“There are other countries that would like to buy Iranian gas, and it is a lot cheaper, a lot easier, and you don’t need to build that infrastructure, you just send it to your neighbors,” he said.
Bryza says it is unlikely that Iran’s gas will go to Europe because economically it doesn’t make much sense.

”There is not enough infrastructure now to get it [gas] to Turkey, and down to Europe, so there has to be a lot of investment in that infrastructure,” he said.

Bryza also noted that if the demand in Europe goes up, if Iran produces gas beyond the volume consumed in its neighborhood, and if sanctions on the Islamic Republic are lifted, it is possible that Iran’s gas will go to Europe.

Speaking further about the prospects for implementation of the Trans-Caspian Gas Pipeline, he said the project is now more promising than it has ever been.

The Trans-Caspian Gas Pipeline is projected to deliver Turkmenistan’s energy resources to European market.

The gas pipeline is intended to run through the bottom of the Caspian Sea to the coast of Azerbaijan. From there on, Turkmenistan’s hydrocarbons can reach Turkey, which shares a border with Europe.

Trans-Caspian Gas Pipeline can be realized as part of a major project for the Southern Gas Corridor, which is meant to deliver the Caspian gas, in particular Azerbaijan’s gas, to Europe. Read the full story here.

Iran studies possible ways to export gas to 'Sponsor' EU[Rabia].

Iran studies possible ways to export gas to 'Sponsor' EU[Rabia]. (Taz).

Iran is studying possible ways to export gas to Europe, including Nabucco (Nabucco west) and Trans-Anatolian pipeline projects (TANAP), a senior Iranian oil official said.

The director of international affairs at National Iranian Gas Company Azizollah Ramezani told Mehr News Agency on August 1 that Iran is studying economical and operational conditions for choosing the most economic and the most secure way to export gas to Europe.

"Based on results of the studies, the best choice will be selected", he said, adding that gas exports to Europe is one of the long-term policies of the Iranian gas industry.

However, the first priority is to export gas to the neighboring countries, especially to the Persian Gulf nations, he noted.

Nabucco West project was the rival of the Trans-Adriatic pipeline (TAP) project in competing for the transportation of Azerbaijani gas to European markets, but failed.

Azerbaijani gas (as well as the potential other gas from Iran, Turkmenistan, etc) would be delivered to Europe through the Southern Gas Corridor by 2020.

The Southern Gas Corridor consists of South Caucasus Pipeline (Azerbaijan, Georgia), Trans Anatolian Pipeline or TANAP (Turkey) and Trans Adriatic Pipeline or TAP (Greece, Albania, Italy).
The concept of the Nabucco West project envisaged the construction of 1,300-kilometer pipeline (412 kilometers running through Bulgaria, 469 kilometers – Romania, 384 kilometers – Hungary, 47 kilometers – Austria) from Turkish-Bulgarian border to Austria’s Baumgarten.

Earlier, Ramazani said on July 30 that stretching a gas pipeline from Iran to Europe needs 10 billion euro worth investment.

He said that so far nothing new has happened regarding gas export to Europe and stressed that as the situation seems ripe, strong will is needed and the sides should pursue talks seriously.

He pointed out that according to studies conducted by the European Parliament, Iran could export 25 to 30 billion cubic meters of gas to Europe annually.


Iran has the long-term potential to become one of the world's top gas producers, thanks to its 34 trillion cubic meters of natural gas reserves, or around 18 percent of the world's total, Fitch Ratings said in a report on July 10. Hmmm.....As i said many times in the past, EU politicians would sell out their whole family for cheap Gas from Iran and Turkey. Now the 'thirty pieces of Silver' are to be paid.

Related Flashback Jan. 2013.

NATO’s Energy Security Strategy: Break Russia’s control over European gas markets.

'Thirty pieces of Silver' - EU will be able to import oil and gas from Iran.

'Thirty pieces of Silver' - EU will be able to import oil and gas from Iran. (Taz).

The draft agreement between Iran and P5 +1 (the US, UK, France, Russia, China and Germany) envisages lifting of restrictions on EU to import oil and gas from Iran and export production equipment to this country, RIA Novosti reported.Hmmmmm.......Belgium would love Iranian Gas.

Proverbs 11:31 " If the righteous is repaid on earth, how much more the wicked and the sinner!"

'Islamist' Turkey interested in gas supply from Iraq to Europe.

'Islamist' Turkey interested in gas supply from Iraq to Europe.(Taz).

Turkey is interested in supplying energy from Iraq to European markets, Turkish Deputy Minister of Energy and Natural Resources Sefa Sadik Aytekin told Trend.

He said Ankara is greatly interested in Iraq’s gas being supplied via the Turkish gas infrastructure, although at present, there is no pipeline between Iraq and Turkey.

“Ankara and Baghdad will begin its construction, as soon as they agree on the supply of Iraqi gas via Turkey to the European markets,” he said.

Earlier, it was reported that the construction of a gas pipeline between Turkey and Iraq will start in 2016. Its capacity will be 30 billion cubic meters.

He said that if the additional gas supply from Iraq exceeds 30 billion cubic meters, Turkey will be able to transport these volumes to the European markets.


Iraqi Oil Minister Adil Abdul-Mahdi has said Iraq has great potential for joining the Trans-Anatolian Pipeline (TANAP) project.Hmmm.....In case you doubted why EU parliament love Erdo, it's all about cheap Gas, Human rights and freedom of speech not so much.

Why Mogherini loves Iran - 'Iran Ready to Supply Gas to Europe' Iran FM.

Why Mogherini loves Iran - 'Iran Ready to Supply Gas to Europe' Iran FM. (Fars).

Iranian Foreign Minister Mohammad Javad Zarif announced Tehran's preparedness to supply gas to the European countries.

"Iran on par with Russia enjoys all the (needed) resources to provide gas to Europe," Zarif said in a joint press conference with his Kazakh counterpart Erlan Idrissov in Astana on Monday.

Meantime, the Iranian minister stressed that his country does not at all intend to replace or rival Russian gas exports, and said, "Tehran is a trustworthy partner and this issue has been understood by China, India, Pakistan and Turkey which use Iran's gas."

Iran, which sits on the world's second largest natural gas reserves after Russia, is making efforts to raise its gas production by increasing foreign and domestic investments, specially in South Pars gas field. The country presently supplies gas to Turkey and Armenia and is due to begin pumping gas to Iraq this spring.

During the press conference, Zarif also referred to bilateral relations between Tehran and Astana, and said, "We have cooperation with Kazakhstan in extensive fields and these grounds lead to regional growth and development and interaction among adjacent countries." Hmmm.....Just lift the sanctions and there will be money to be made. Everyone has his price.....some with no morals come very cheap.Just look how Erdo is allowed to behave in exchange for Cheap gas promises.