Iranian Minister of Petroleum Javad Owji on Thursday heralded a new era following the signing of a gas transmission agreement between the Iranian National Gas Company (NIGC) and Russia's Gazprom.

Speaking in a radio interview, Owji said that the MoU between the two nations promises to elevate Tehran's stature to a pivotal gas hub in the region.

The agreement marks an important milestone that will substantially increase Iran's presence in the international gas market, he said, adding that this will trigger significant shifts in global energy dynamics.

"With this agreement, Iran's share of trade will rise causing changes in international balances. In other words, the agreement will act as a revolution in the energy and industry scene of the region," he said.

Read more: Moscow-Tehran settlements unaffected by Western sanctions on Russia

The bilateral agreement between the parties holding just under 60% of the world's natural gas reserves, aimed at promoting clean energy, has been finalized on the basis of shared international interests. The agreement is set to proceed to the contracting and implementation phases soon.

"Over the past three months, my colleagues were engaged in talks with Gazprom officials which bore fruit and fortunately led to the signing of a memorandum of understanding (MoU) between NIGC and Gazprom in the presence of the Iranian acting president Mohammad Mokhber and the managing director of the Russian company Alexi Miller," he added.

Touching on the strategic importance of finalizing the agreement, Owji noted that the late former President Ibrahim Raisi had prioritized its completion. He expressed confidence in the rapid transformation of the MoU into a binding contract, predicting it to be a pivotal moment for both nations.

The forthcoming contract is expected to solidify Iran's position as a pivotal player in the regional energy landscape, while deepening cooperation with Russia, a key partner in global energy dynamics.

Read more: Russia's Gazprom records first annual loss in 25 years

Russian energy giant Gazprom on Thursday announced it has signed a strategic agreement with Iran's NIGC to facilitate the delivery of Russian gas to Iran.

The memorandum was finalized during Gazprom's delegation visit to Iran, led by Chairman Alexey Miller and attended by Iranian interim top official Mohammad Mokhber.

According to Gazprom, the agreement aims to foster long-term cooperation for mutual benefit in the energy sector.

This marks Gazprom's second visit to Iran in 2024, following discussions between Miller and Owji on implementing the pact and exploring further collaboration, building on their interactions at the Russian Energy Week in Moscow last October.

Gazprom has maintained a presence in Iran since 2002 through a representative office.