Global Business in Iran Database
In-depth metrics and analysis of Iran's international economic partnerships.
Azerbaijan-Iran, Gas Import Deal
description
The State Oil Company of Azerbaijan (SOCAR) and the National Iranian Gas Export Company (NIGEC) have signed a short term agreement concerning the sale and export of Azerbaijani gas to Iran. Under the terms of the three month deal, Iran will import some 100 million cubic meters of gas by March 2010, roughly 1.2 million cubic meters a day. Simultaneously, both countries are finalizing a longer term gas deal that envisions Iran importing 5 million cubic meters a day. Currently both countries are linked by the Kazi-Magomed-Astara gas pipeline, with a reported capacity of 10 billion cubic meters per year. Seyyed Reza Kasaeideh, head of the National Iranian Gas Export Company, says that Azerbaijani gas imports will total 2 billion cubic meters per year. The deal is expected to be signed in 90 days.
Iran is interested in importing the full capacity of the pipeline, nearly 10 billion cubic meters per annum. Reports note that Iran's gas transportation infrastructure cannot meet the growing domestic gas demand in Iran's northern provinces, making Azerbaijani gas attractive.
- Country: Azerbaijan
- Client: National Iranian Gas Export Company (NIGEC)
- Contractor: State Oil Company of Azerbaijan Republic (SOCAR)
Status
- Current Status:
- Discussion Date: Tue, 2010-01-19
- Contract Date: Tue, 2010-01-19
- Completion Date:
Citation
1. "Tehran, Baku to finalize gas deal in three months", Mehr News Agency, 20 January 2010, available at https://www.opensource.gov/portal/server.pt/gateway/PTARGS_0_0_200_240_5....
2. "Azerbaijan Carries out Test-Run of Gas Pipeline to Iran", Fars News Agency, 19 January 2010, available at http://english.farsnews.com/newstext.php?nn=8810291495.
3. "Iran to increase Azerbaijan gas imports", Arabian Oil and Gas, 28 February 2010, available at http://www.arabianoilandgas.com/article-6994-iran-to-increase-azerbaijan....
