Iran pitches huge gas reserves for Asia markets

Iran pitches huge gas reserves for Asia markets

Iran is pitching its massive gas sector for trade with Asia where it sees a better market for exports than Europe.

“Gas prices are more attractive in East Asia than in Europe,” Deputy Petroleum Minister for trade and international affairs Amir-Hossein Zamaninia has said. 

The country hopes to eventually export natural gas to East Asia, including Japan, he told the Kyodo news agency in an interview on Sunday.

Zamaninia held the prospect of Iran and Japan forming a long-term partnership for the supply of Iranian LNG to the Asian country. 

“Japan has a great potential of becoming a major partner for Iran in developing its gas industry,” he said. 

The two countries have a chequered history of trade relations. They had to ditch a massive petrochemical project in 1991 as the Iraqi war of 1980-1988 under former dictator Saddam Hussein dragged on. 

In 2010, Japan’s state-owned Inpex walked out of an agreement to develop the Iran’s South Azadegan oilfield under US pressures. 

Tokyo, however, was among the first countries to rush through a series of measures to lift sanctions on Iran before a nuclear agreement with Tehran went into effect. 

In August, Japan sent its State Minister of Economy, Trade and Industry Daishiro Yamagiwa to Tehran with executives from major trading houses such as Mitsubishi Corp., Mitsui & Co. and Itochu, as well as plant-engineering giant JGC and major banks. 

Tehran accounted for 10% of Japan’s oil imports before sanctions cut them to five percent. Japan wants to raise the purchases to the previous level. 

“Given that Iran’s oil and natural gas reserves are one of the world’s biggest, there is a possibility that Iran will play a part if Japan seeks to diversify its supply sources,” Kyodo quoted a Japanese gas and oil industry source as saying Sunday.

Zamaninia said Japanese companies are interested in being re-engaged in the Iranian energy sector, especially in the gas sector, adding he thinks Japan’s current policy seems to be focusing less on crude oil.

 

Source: PressTV

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