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  • Iran, Azerbaijan Sign MoU to Double Turkmen Gas Swap

Iran, Azerbaijan Sign MoU to Double Turkmen Gas Swap

Tehran and Baku signed a Memorandum of Understanding (MoU) to increase gas swap from Turkmenistan to the Republic of Azerbaijan via Iran’s territory.

Iranian Minister of Petroleum, Javad Owji, who is in Azerbaijan to attend Baku Energy Week, on Friday signed the MoU on bilateral cooperation during a meeting with Azerbaijani Economic Minister, Mikayil Jabbarov.

Under the MoU, the two sides agreed to double the volume of Turkmenistan gas swap to the Republic of Azerbaijan through Iran annually.

Iran, Azerbaijan and Turkmenistan struck a deal on the sidelines of ECO Summit in December 2021 to swap 1.5 to 2 billion cubic meters of Turkmen gas to Azerbaijan.

The deal, which was signed after a five-year suspension in Iran-Turkmenistan gas trade, will help to improve sustainable gas flow in northeastern Iran’s gas network and pave the way to turn Iran into an energy hub in the region.

The swap volume is also expected to increase in the future.

During the bilateral meeting, other economic issues in energy, transportation, bilateral trade and other areas were also discussed.

Owji Meets with Azerbaijani Deputy PM

Javad Owji and Shahin Mustafayev met on Wednesday and talked about current issues including an increase in Turkmenistan gas swap to Azerbaijan as well as cooperation in the development of hydrocarbon resources in the Caspian Sea.

Iranian Minister of Petroleum referred to two billion cubic meters of Turkmenistan gas swap to the Republic of Azerbaijan via Iran’s territory, announcing the gas transmission volume is to double.

during the meeting, Iran and Azerbaijan reached agreements on the development of joint energy fields in the Caspian Sea in the form of a joint committee, Javad Owji was quoted by the Islamic Republic of Iran Broadcasting (IRIB) as saying after a meeting held on Thursday with Deputy Prime Minister of the Republic of Azerbaijan, Shahin Mustafayev.

Pointing to the Iranian companies’ ability in energy technology and engineering area, he said: “The capacity of Iranian contractors is going to be used in the development of oil and gas fields.”

Meanwhile, Deputy Prime Minister of the Republic of Azerbaijan, Shahin Mustafayev, referred to the successful trilateral gas transmission cooperation among Iran, Turkmenistan and the Republic of Azerbaijan, saying: “Cooperation in energy sector could result in sustainable development in the region.”

He then announced formation of a joint study task force between the two countries’ energy development sectors.

Activating energy diplomacy and expanding cooperation with neighboring countries are the objectives of Iran’s oil delegation trip.

Shah Deniz Field is Iran-Azerbaijan Successful Experience

During a meeting with Azerbaijani Energy Minister, Parviz Shahbazov, here on Friday, Javad Owji appreciated Azerbaijan’s hospitality and congratulated its National Day, saying: “President Raisi greatly emphasizes development of relations with Iran’s neighbors such as Azerbaijan and it is among the 13th administration’s policies.

The development of energy relations between the two countries will pave the way for the development of relations in other areas as well. On the other hand, Iran is ready to increase gas swap between Turkmenistan and Azerbaijan,” Owji noted.

The two countries’ partnership in Shah Deniz field is also a good experience that can provide the ground for defining joint cooperation in the oil and gas blocks and fields in the Caspian Sea.

During the meeting, both sides discussed and signed some Memoranda of Understanding (MoUs) in various areas including the implementation framework for increasing gas swap, the integrated development of joint blocks and fields in the Caspian Sea, power exchange and the areas of joint cooperation.

Meanwhile, Shahbazov said there are many commonalities between Iran and Azerbaijan and added appropriate cooperation has been created between the two countries in international organizations such as OPEC Plus.

The agreement to swap Turkmen gas to Azerbaijan was also a historic and valuable event and the presence of the presidents in signing the agreement has strengthened it, he said, adding: “I am grateful that Iran is ready and has the necessary infrastructure to increase gas swap volume.”

Sanctions Could Not Hinder Iran’s Oil Industry Progress

Delivering a speech at Baku Energy Forum on Thursday in presence of the ministers and representatives of about 30 countries, Owji referred to Iran’s success in oil and gas production, saying: “Iran’s oil and gas development has not been stopped despite cruel sanctions imposed against the country over years.”

Iran, as a holder of the largest gas capacity in the world, currently has about 34 trillion cubic meters of gas reserves and is able to meet a significant amount of global needs, he noted.

At present, we have the capacity to produce 1 billion cubic meters of gas per day, he said, adding: “Our oil production capacity is close to 4 million barrels, and we produce about 92 million tons of petrochemical products per year.”

Our daily gas output capacity has to reach 1.4 billion cubic meters in the next 8 years, he said, adding the world is in sever need of energy and Iran can meet a part of it. The Islamic Republic of Iran welcomes investment in gas production and trade.

Iran is located at the crossroads of the world energy transit. Large energy producers such as Russia and Turkmenistan are situated in north of Iran and Qatar is in the south. We have the capacity to transfer such huge resources to consumer markets, he said.

People around the world need to have access to energy, Owji said, adding that the Islamic Republic of Iran wants all people in the world to enjoy this God-given blessing and is prepared to cooperate in all sectors of oil and gas development, trade and transmission internationally and regionally through good and strong infrastructure in our country.

Referring to the holding of the Iran Oil Show, he described the localization of energy technologies in Iran a good opportunity for joint cooperation with regional countries, saying: “[Iran’s] experience in Turkmenistan gas swap to the Republic of Azerbaijan can be repeated for all neighboring countries.”

We have the second largest gas pipeline network, after Gazprom, and good projects have been defined in LNG sector.

We have not even cut off the gas flow to the countries which delay their payments and we invite all nations and companies interested in making investment in oil industry’s upstream and downstream sectors, as well as in transmission of the energy carriers.

Considering the clean energy as one of the country’s priorities, Owji said: “This year, we have produced about 1,000 megawatts of renewable energy which is scheduled to reach 4,000 megawatts by the next four years.

Owji Meets with Kazakhstan Energy Minister

Iranian Minister of Petroleum, Javad Owji, met with Kazakhstan Energy Minister, Bulat Aqchulaqov, on Thursday on the sidelines of Baku Energy Forum.

The two sides discussed bilateral cooperation in oil industry's upstream and downstream sectors and various energy trade.

They also emphasized the great potentials for joint cooperation in different oil and gas areas and talked about their various capacities for collaboration.

Owji Stresses Expansion of Iran-Azerbaijan Ties

Iranian Minister of Petroleum underlined expansion of relations with Azerbaijan, saying the gas swap contract has provided the ground for cooperation in other sectors including transportation, power, trade and such areas.

Turkmenistan gas swap to Azerbaijan has been put on the 13th administration’s agenda since it took office, he said, adding: “The contact to swap Turkmen gas to Azerbaijan via Iran’s territory was signed on the sidelines of the 15th Summit of the Economic Cooperation Organization (ECO) in Ashgabat after several rounds of negotiations and in presence of Iranian and Azerbaijani presidents, and came on stream on January 1, 2022."

Signing the gas swap contract has paved the way for cooperation in other sectors including transportation, power, trade and such areas, he said.

Iranian and Azerbaijani officials reached agreements on the development of joint fields in the form of a joint committee, he said, adding: “Azerbaijan and Shah Deniz field are the only places Iran has invested in. The two countries have also made a power import agreement.”

Azerbaijan has announced its readiness to participate in some Iranian projects including Rasht-Astara railway, he noted, adding: “Iran’s Supreme Leader and President emphasized further development of relations with Azerbaijan.”

Iran used to produce 25 million cubic meters of gas per day before the Islamic Revolution. After the revolution, when foreign experts, especially American ones, left our oil industry, we produce about one billion cubic meters of gas per day thanks to local experts.

We are developing the industry without foreign professionals, he stressed, stating: “Iran is the world’s largest holder of oil and gas reserves in total, and the industry has been developed by domestic specialists.”

Referring to his trip to Latin America, Owji said, “since 2017 when the United States imposed sanctions on Latin American countries, particularly Venezuela, their whole oil industry has been halted as it was generally developed by foreign experts.”

Owji Meets with Bulgarian, Romanian Energy Ministers in Baku

Iranian Minister of Petroleum, Javad Owji, met with Bulgarian Energy Minister, Virgil-Daniel Popescu, and Romanian Energy Minister, Alexander Nikolov, on Friday in Baku on the sidelines of Baku Energy Week in Baku and discussed global energy crisis, technical and engineering services exports and various cooperation area

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