Iran and Russia could begin swap supplies as soon as new year

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Tehran expects that Moscow would negotiate a deal with Turkmenistan to transfer oil to Iran in swap supplies, in which case deliveries are expected to begin by the end of 2022, according to Iranian Deputy Petroleum Minister Ahmad Asadzadeh.

"We are 100% ready, our infrastructure is ready, we have done all the necessary work. We hope that the Russian side will do its own [work], reach an agreement with Turkmenistan, and carry out the necessary harmonization work, since this gas will be supplied through Turkmenistan. Then we will be able to receive gas before the end of the year. The ball is on the side of Russia, as we say," Asadzadeh said.  

Earlier, in July of this year, the National Iranian Oil Company signed with Russian Gazprom a memorandum of understanding in the energy sector that includes Moscow investing $40 billion in developing the Kish gas field and the northern Fars oil field, increasing the production of the lower Fars gas field, and developing six Iranian oil fields.

As part of the agreement, the firms agreed to investigate the prospect of collaborating on the development of Iranian fields, the realization of liquefied natural gas (LNG) projects, and the building of gas pipelines. Iran quickly announced intentions to purchase 9 million cubic meters of Russian gas, which will be transferred across Azerbaijan's border.

The parties also agreed to supply Iran with 6 million cubic meters of gas per day in exchange for additional swap deliveries in the form of LNG to other southern states. The supplies are expected to be routed through Turkmenistan, with whom Tehran has recently increased gas relations.

Later in October, Russian Deputy Prime Minister Alexander Novak stated that the initial stage of the deal on swap supplies with Iran may encompass 5 million tonnes of oil and up to 10 billion cubic meters of gas each year.

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