Iran eyes exporting natural gas to China

Iran can use the pipeline, which is intended to export natural gas to Pakistan (Peace Pipeline), for exporting gas to southern China, managing director of the National Iranian Gas Company Hamid-Reza Araqi said.

With increasing natural gas production (from current 700 million cubic meters per day- mcm/d) to 1000 mcm/d (in 2019), an appropriate capacity for boosting gas exports will be created, Shana news agency quoted Araqi as saying on November 14.

Iran hasn’t completed Peace Pipeline on its territory, while Pakistan has not even started on its soil to receive 22 mcm/d of Iranian gas, but China signed an agreement with Pakistan in April to construct a pipeline from Gwadar port (80 km away from Iran-Pakistan border) to Navvabshahr city. Iran hopes to connect Peace Pipeline to Gwadar – Navvabshahr pipeline. This pipeline could be stretched from Navvabshahr towards China borders in the future to transit Iranian gas to China.

Araqi said that India is also interested in Iranian gas, but they do not want to import gas via Pakistan.

The Iran-Pakistan gas pipeline is meant to transfer natural gas from Iran’s South Pars gas field in Assaluyeh to Pakistan. A major portion of the Iran section (900 km) has been constructed and needs around 200 kilometers to be complete. Iran long pressed Pakistan to build its part of the scheme. However, Pakistan has so far failed to implement its share of the project due to what officials say to be a lack of funds.

China’s gas consumption is expected to rise 4.7 percent annually, the fastest growth among all regions, to 592 billion cubic meters, according to the International Energy Agency.

Officials say Iran’s overall natural gas production will reach 1200 to 1300 mcm/d in early next decade.