Iran able to become energy hub through re-exporting Russian gas, says expert

TABNAK: An Iranian energy expert said country could take a big step in becoming an ‘energy hub’ through an agreement with Russia for importing and re-exporting Russian gas.

“If we can have a strategic agreement with Russia to buy its gas and re-export it, (without using it for internal consumption), it could be Iran’s big step towards becoming an energy hub,” said energy expert Habibollah Mozaffarian.

Iran’s geographical and strategic position, energy surplus of certain neighbors (Turkmenistan and Russia) and energy needs of some other neighbors (Turkey, Iraq and Oman) have made a unique opportunity for Iran to act as a hub.

The expert continued Iran’s acting as a regional energy hub would bring economic and political benefits for the country, creates mutual dependency among neighbors and increases Iran’s political power.

Moreover, Iran’s efforts to start trading electricity and oil products including gasoil and gas from northern neighbors to southern ones are also quiet important in making the country an energy hub.

Russian gas exports which surplus 100 billion cubic meters have been limited following Ukrainian war. Although Russian increased gas exports to China has been unable to make up for the country’s cutting back on gas exports to Europe.

Russia needs markets to sell its surplus gas to countries including South Asian nations which can be reached through Iran.