With UN sanctions restricting Iran’s ability to do business set to be lifted very soon, there could also be a boom of LNG deliveries to Europe through the next five to ten years, according to the country’s Deputy Oil Minister.
However, Iran is not planning yet to build a pipeline to Europe, as currently the Asian market is more attractive. According to the current situation on the energy market, the prices in Europe are quite lower than Asia, due to the increased competition.
This, maybe, will force Iran first to turn to closer Asian countries for export and, just after that, to plan any deliveries to Europe. Iran boasts the world’s second-largest gas reserves after Russia and the importance of the country on the energy market is very big.
“Currently, Iran is not implementing LNG supply to anyone, but if we will produce enough gas, the cost-effectiveness will show us where to deliver,” said the Deputy Oil Minister, Amir Hossein. “Now the price is much lower in Europe than in Southeast Asia, there is no point in the supply of pipeline gas to Europe. But the supply of LNG is another topic, so maybe in five to ten years,” he finished.