Iran Hopes to Export Gas to EU Through Spain

DUBAI, Sept 7 (Reuters) – Iran hopes to carry its gasoline to the European Union by transport liquefied pure gasoline (LNG) to Spain, Iran’s oil minister was quoted as saying on Monday at a information convention together with his Spanish counterpart in Tehran.

Iran has no capacity to freeze its gasoline into LNG for tanker exports past the attain of pipelines, after a number of tasks stalled because of Western sanctions that pressured overseas firms to drag out of Iran. Experts reckon it would take round two years for that to occur, if companions are discovered.

“Talks between Iran and Spain on this topic will continue,” Bijan Zanganeh mentioned, after assembly Spain’s Minister of Industry, Energy and Tourism Jose Manuel Soria, the Iranian oil ministry’s information company Shana reported.

Shana quoted Soria, a part of a Spanish delegation to Tehran, as saying his nation may “act as a channel for Iran’s gas exports to Europe”. He didn’t elaborate and the ministry in Madrid declined to substantiate the remark.

There are a number of issues with importing Iranian LNG into Spain. Top of the listing are underdeveloped pipeline hyperlinks with different European nations successfully making Spain a gasoline island and fewer of a gateway to Europe.

Work to broaden pipe connections between France and Spain have been slowed down for years and sophisticated by mountainous terrain, though there have been latest indicators of progress.

Spain has Europe’s greatest LNG import capability.

Sanctions on Iran could also be lifted in 2016 below the phrases of a nuclear deal struck in July, however it would take years for Iran to start out exporting LNG.

“First Iran has to bring in new firms, and from there it’s going to take about two years before they can start exporting,” mentioned analyst Moses Rahnama on the Energy Aspects consultancy in London.

Analysts say Iran has already misplaced out on profitable LNG exports in Asia, the place clients pay the very best costs, to Gulf rival Qatar, so Tehran has to look to Europe.

The EU hopes to import gasoline from Iran, which has among the world’s largest reserves, to scale back its dependence on Russia. But even after sanctions are lifted, the dearth of export infrastructure will delay plans.

The most possible route for Iranian gasoline to Europe could be through Turkey, already a buyer, though the prevailing Tabriz-Ankara pipeline wouldn’t be sufficiently big for main exports.

Iran has lengthy lobbied to construct a chosen pipeline that might join its large South Pars gasoline discipline with European clients – the so-called Persian Pipeline. (Reporting by Sam Wilkin, extra reporting by Paul Day in Madrid and Oleg Vukmanovic in Milan; Editing by Rania El Gamal, William Hardy and Dale Hudson)