Iran To Build Regional Natural Gas Hub

Iran is working with Russia, Qatar, and Turkmenistan to establish a natural gas hub in the Persian Gulf, according to Iranian Oil Minister Javad Owji on Wednesday.  

“With the cooperation of Russia, Turkmenistan, and Qatar, we are trying to have a gas hub in the Asaluyeh region, and its preparations are being planned,” Iranian media quoted Owji as saying on Wednesday.

Asaluyeh is a port and oil hub in the Gulf's southern Bushehr province.

According to the Iranian oil minister, Iran would also retain its natural gas swap arrangements with surrounding countries.

Iran is thought to have the world's second-largest natural gas reserves, after Russia, and ahead of Qatar, Turkmenistan, and the United States.

Iran holds 16% of the world's natural gas reserves, at 32 trillion cubic metres.

The South Pars offshore field in the Persian Gulf, which Iran shares with Qatar, has a large portion of Iran's gas reserves.

Total 2020 output was 234 billion cubic metres, with a daily average of 645 million cubic metres.

The withdrawal of Western supermajors such as TotalEnergies in the aftermath of former President Donald Trump's reinstatement of US sanctions against Iran has made development of the country's massive gas reserves difficult.

In recent years, Iran has developed deeper ties with Russia and Venezuela, both of which are sanctioned by the US and the West.

Following a meeting between Iranian officials and a Russian delegation led by Deputy Prime Minister Alexander Novak last month, reports emerged that Iran and Russia are discussing the cooperative development of up to ten oil and gas reserves in Iran.

The suggestion comes from Iran, and it comes amid discussions about exploiting the country's other oil and gas resources.