Iran’s Gas Potential Is In the Spotlight Again as World Shuns Russia
, Bloomberg News
(Bloomberg) -- Lesser-known natural gas exporters are stepping into the spotlight as pressure mounts on companies to cut ties with energy giant Russia over its invasion of Ukraine.
While liquefied natural gas from the U.S. and Qatar, as well as pipeline volumes from Algeria to Azerbaijan, are seen plugging a short-term gap, delegates at the European Gas Conference in Vienna questioned Monday whether Iran could step up as a supplier.
European buyers are scrambling to replace Russian gas flows following the invasion of Ukraine that’s exacerbated an already tight market and low inventories. Russia is the European Union’s top supplier of the fuel, providing about 40% of volumes consumed in the bloc last year.
“No one has been talking about Iran for a very long time,” said Anne-Sophie Corbeau, a Global Research Scholar at the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs. “There are three ways Iranian gas could possibly help Europe.”
Iran, which holds the second-largest gas reserves in the world, is reviving efforts to export LNG, just as Europe tries to cut reliance on Russian energy. Corbeau said this could help alleviate gas-supply tightness, however it may take some time.
More Iranian gas could also be going toward Pakistan, with a pipeline already in place at the border, she added.
“If we get Pakistan getting more affordable gas from Iran, maybe therefore you remove a bit of LNG demand from Pakistan,” Corbeau said.
Extending the Trans Adriatic Pipeline, that delivers gas from Azerbaijan to Europe, could also help alleviate Europe’s supply tightness, Corbeau said, but would require the expansion of the network in Turkey.
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