Iran and Russia have resolved 90% of the issues involved in sending Russian piped gas to Iran, according to Kazem Jalali, Iran's ambassador to Russia, as reported by the Energy Intelligence.
"The document is signed. We are fully prepared, we are conducting technical studies, but 90% of our issues have been resolved," Jalali said Tuesday at the Eurasian Oil and Gas Forum in Moscow.
Iran Oil Minister Mohsen Paknejad will visit Moscow next week, Jalali said, to participate in a meeting of an intergovernmental commission on trade and economic cooperation between the two countries. The meeting will "discuss our issues."
"We are ready for the transit of Russian gas. All the necessary infrastructure will be provided to our Russian colleagues," Jalali said.
Under the plan agreed by Russia and Iran in January, the pipe would run via Azerbaijan, supplying an initial 2 billion cubic meters per year and potentially expanding to 55 Bcm/yr at a later stage. Initial volumes could flow via the existing, bidirectional Baku-Novo Filya pipeline from Russia to Azerbaijan — built in 1982 — then onward to Iran. Expanded volumes would require an expensive new pipeline.
The deal is in line with Gazprom’s strategy to redirect gas exports following the loss of most markets in Europe amid the war in Ukraine.
For Tehran, the deal could provide an additional source of gas as it faces shortages during seasonal demand spikes despite its own rich upstream resources and regional gas hub ambitions.
However, Russian experts remain skeptical of the scheme. They note that it makes little economic sense since domestic prices in Iran are very low, while possible exports via the Islamic Republic would lose out to lower-cost Qatari gas and face geopolitical factors.
A source close to the Russian energy ministry’s analytical body called the scheme a political project rather than economic. "It can be finalized as part of a bigger political deal," he noted.
Further cementing relations between the two countries, the Russian parliament ratified this week a comprehensive strategic partnership agreement signed by the sides in January during the visit to Moscow by Iranian President Masoud Pezeshkian.