Gas swap with Russia expected to earn Iran at least $6 billion a year

A potential gas swap deal with Russia could earn Iran at least $6bn a year, according to IRENEX figures.

14 December 2022
ID : 44304
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Iran can make at least $6 billion per year from a potential gas swap deal with Russia which would allow the country to consume gas imported from Russia in its north and deliver the same amount to other customer countries, according to figures by Iran Energy Exchange (IRENEX).

IRENEX figures cited in a Monday report by the official IRNA news agency showed that if Iran takes delivery of some 15% of Russia’s surplus gas under a swap or import deal, the country could save up to $6 billion per year on fuel supplied to power plants in its populous northern regions.

That could enable Iran to significantly ramp up its exports of fuels like gas oil and mazut, said the report by IRNA, adding that the projected income figure does not include transit fee revenues that could be earned by Iran in a swap deal with Russia.

It said that Iran has a capacity of importing some 3 billion cubic meters per year of natural gas from Russia through pipelines in Turkmenistan and Azerbaijan.

Russia has been faced with a major surplus of natural gas since early 2022 when the country was forced to cut exports to Europe because of sanctions related to the war in Ukraine.

Iranian and Russian authorities have indicated they have been involved in talks in recent months to work out a gas swap mechanism.  

Experts say a potential gas swap deal between Iran and Russia would significantly deepen energy ties between the world’s two main gas suppliers.