Russian energy giant Gazprom has signed a memorandum with the National Iranian Gas Company (NIGC) to supply Russian pipeline gas to Iran. The memorandum was signed during a visit by Gazprom's head to Iran, in the presence of Iran's interim president Mohammad Mokhber. This move signifies Gazprom's interest in tapping into Iran's vast natural gas reserves, as the country holds the world's second-largest gas reserves after Russia.
Due to U.S. sanctions, Iran has faced challenges in accessing technology and developing its gas exports. This collaboration with Gazprom could potentially help Iran overcome some of these obstacles and boost its gas industry.
Notably, Gazprom has been experiencing a decline in its gas supplies to Europe, a market that used to account for a significant portion of its gas sales revenue. The ongoing conflict in Ukraine has led to a decrease in Gazprom's gas sales to Europe, resulting in substantial losses for the company.
Earlier in July 2022, Gazprom had signed a memorandum of understanding with the National Iranian Oil Company (NIOC) for energy cooperation valued at around $40 billion. However, concrete deals stemming from this agreement have yet to materialize.
As per the terms of the agreement with NIOC, Gazprom was expected to assist in the development of gas fields such as Kish and North Pars, as well as six oil fields. Additionally, Gazprom was slated to participate in the completion of liquefied natural gas (LNG) projects and the construction of gas export pipelines in Iran.
