Gazprom signs deal with Iran

[Stephen + 67]

Russia’s top gas producer Gazprom has signed a roadmap on implementation of projects in Iran and a memorandum of understanding and cooperation on an LNG project in the country. The first stage of Iran LNG project envisions the construction of two LNG lines with capacity of 5.25 mln tonnes per year each. The second stage implies that the capacity will be increased to 21 mln tonnes per year due to the construction of two more lines. 

 

[Meanwhile + 49]

Gazprom has a number of gas memorandums with Iran already. However, it is noticeable that they are increasing the presence 

[JohnAtronis + 78]

But how are they work out the technicalities on how Gazprom would cooperate with Iran over production of LNG without falling afoul of US sanctions

 

[Meanwhile + 49]

1 minute ago, JohnAtronis said:

But how are they work out the technicalities on how Gazprom would cooperate with Iran over production of LNG without falling afoul of US sanctions

 

Production of LNG requires a technology heavily patented by American companies. That technology cannot thus be provided to the Islamic Republic due to sanctions by the US against the country.

Foreign companies are also banned from developing any LNG project on Iran’s soil due to the same sanctions.  The country had previously devised three liquefaction projects – Pars LNG, Persian LNG and NIOC/Iran LNG – but had to shelve them after investors – Total and Shell - refused to push them forward as a result of sanctions.

[Joanna + 68]

I don’t think that deal will have major impact on worldwide LNG market. Iranians won’t have much gas to export because they are likely to use most of the new production themselves. That is why US administration is keeping quiet on this.  

 

[Kate Turlington + 44]

definitely major geopolitical currents to this one. This is 'them' trying to trump Qatar, the gas king. 

[Kate Turlington + 44]

Puts Qatar in a bit of a bind. It's already gotten into trouble with a Saudi regime that likes to play dirty over Iran. It doesn't want to push Iran into a corner, but it's also got to share that massive South Pars gas field with Iran. It's either cooperate to some extent or get left out of the game entirely.