Iran Eyes Chinese Gas Market

Tehran plans to export natural gas to China by extending the Iran-Pakistan (IP) gas pipeline.

Managing Director of the National Iranian Gas Company Hamid Reza Araqi told Islamic Republic News Agency (IRNA) that once the IP gas pipeline is fully functional, the next step for Iran would be to look into extending the pipeline to southern China.

“Due grounds will be prepared for exporting Iran's gas after the gas production in the country reaches one billion cubic meters per day,” said Araqi.

The Iran-Pakistan pipeline project has been much delayed due to western sanctions imposed on Tehran. As per the agreement between the two nations signed in 2009, the first flow of gas to Pakistan should have started by Dec 31, 2014. Iran has already built 900 kilometers of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be constructed.

With Iran having signed a nuclear deal with major global powers earlier this year, sanctions are expected to be lifted which may finally lead to completion of the gas pipeline.

Indians, he said, are also interested in importing Iran's gas but they are not willing to do so through Pakistan route, IRNA reported Saturday