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EU INCREASING URGENCY OF IRAN GAS IMPORT AS RELATIONS THAW
September 24, 2014 - 17:52 AMT
PanARMENIAN.Net - The European Union is quietly increasing the
urgency of a plan to import natural gas from Iran, as relations with
Tehran thaw while those with top gas supplier Russia grow chillier,
Reuters reported.
Two "ifs" - the removal of sanctions on Iran and the addition of some
pipeline infrastructure - are not preventing EU planners preparing,
a European Commission source involved in developing EU energy strategy
told Reuters.
"Iran is far towards the top of our priorities for mid-term measures
that will help reduce our reliance on Russian gas supplies," the source
said. "Iran's gas could come to Europe quite easily and politically
there is a clear rapprochement between Tehran and the West."
Russia is currently Europe's biggest supplier of natural gas, meeting
a third of its demand worth $80 billion a year. The EU has imposed
sanctions on Moscow over the conflict in Ukraine, increasing the need
for gas from elsewhere.
While sanctioned itself, Iran has the world's second largest gas
reserves after Russia and is a potential alternative given talks
between Tehran and the West to reach a deal over the Islamic Republic's
disputed nuclear program.
"High potential for gas production, domestic energy sector reforms
that are underway, and ongoing normalization of its relationship with
the West make Iran a credible alternative to Russia," said a paper
prepared for the EU's Directorate-Generale for External Policies
following Russia's annexation of Ukraine.
However, the paper added that Iran was not a credible alternative
energy supplier in the short-term due to sanctions and large
infrastructure needs before exports become viable.
Internal EU energy security documents seen by Reuters also describe
plans to tap new non-European gas import sources in central Asia,
including Iran.
Iran, exploiting the reversal of old enmities caused by the upheaval
of the Islamic State militants in the Middle East, is also keen to
sell its gas.
"Iran can be a secure energy center for Europe," its President Hassan
Rouhani was quoted on Wednesday telling Austrian President Heinz
Fischer in New York.
Tehran's assertions over reliable supply are likely to ring alarm
bells at Russia's giant Gazprom, after interruptions to its exports
via Ukraine in previous disputes scared Europe.
"Iran is trying to position itself in Europe as an alternative to
Russian gas. It's playing a very sophisticated game, talking with
Russia on the one hand about cooperation on easing sanctions and also
talking to Europe about substituting Russian gas with its own," said
Amir Handjani, an independent oil and gas specialist working in Dubai.
"Given Russia's current strategy politically, which is one of
confrontation with Europe, I see the EU having little choice but to
find alternative gas supplies," he added.
http://www.panarmenian.net/eng/news/182777/
September 24, 2014 - 17:52 AMT
PanARMENIAN.Net - The European Union is quietly increasing the
urgency of a plan to import natural gas from Iran, as relations with
Tehran thaw while those with top gas supplier Russia grow chillier,
Reuters reported.
Two "ifs" - the removal of sanctions on Iran and the addition of some
pipeline infrastructure - are not preventing EU planners preparing,
a European Commission source involved in developing EU energy strategy
told Reuters.
"Iran is far towards the top of our priorities for mid-term measures
that will help reduce our reliance on Russian gas supplies," the source
said. "Iran's gas could come to Europe quite easily and politically
there is a clear rapprochement between Tehran and the West."
Russia is currently Europe's biggest supplier of natural gas, meeting
a third of its demand worth $80 billion a year. The EU has imposed
sanctions on Moscow over the conflict in Ukraine, increasing the need
for gas from elsewhere.
While sanctioned itself, Iran has the world's second largest gas
reserves after Russia and is a potential alternative given talks
between Tehran and the West to reach a deal over the Islamic Republic's
disputed nuclear program.
"High potential for gas production, domestic energy sector reforms
that are underway, and ongoing normalization of its relationship with
the West make Iran a credible alternative to Russia," said a paper
prepared for the EU's Directorate-Generale for External Policies
following Russia's annexation of Ukraine.
However, the paper added that Iran was not a credible alternative
energy supplier in the short-term due to sanctions and large
infrastructure needs before exports become viable.
Internal EU energy security documents seen by Reuters also describe
plans to tap new non-European gas import sources in central Asia,
including Iran.
Iran, exploiting the reversal of old enmities caused by the upheaval
of the Islamic State militants in the Middle East, is also keen to
sell its gas.
"Iran can be a secure energy center for Europe," its President Hassan
Rouhani was quoted on Wednesday telling Austrian President Heinz
Fischer in New York.
Tehran's assertions over reliable supply are likely to ring alarm
bells at Russia's giant Gazprom, after interruptions to its exports
via Ukraine in previous disputes scared Europe.
"Iran is trying to position itself in Europe as an alternative to
Russian gas. It's playing a very sophisticated game, talking with
Russia on the one hand about cooperation on easing sanctions and also
talking to Europe about substituting Russian gas with its own," said
Amir Handjani, an independent oil and gas specialist working in Dubai.
"Given Russia's current strategy politically, which is one of
confrontation with Europe, I see the EU having little choice but to
find alternative gas supplies," he added.
http://www.panarmenian.net/eng/news/182777/