Iran to receive 300 mcm of Russian gas daily, oil minister says
Adds seeking comment from Russia in paragraph 5, context on amount of gas in paragraph 7
DUBAI, July 17 (Reuters) -Iran will receive 300 million cubic metres of Russian gas daily, the official IRNA news agency reported Iran's oil minister Javad Owji as saying on Wednesday.
Russian energy giant Gazprom GAZP.MM signed a memorandum in June with the National Iranian Gas Company to supply Russian pipeline gas to Iran.
"We currently produce between 840 to 850 million cubic metres per day of natural gas in Iran. Under the agreement, 300 million cubic metres of gas per day will be transferred from Russia through the Caspian Sea," Owji said, adding that the cost of creating the necessary infrastructure would be borne by Russia.
As part of the 30 year agreement, any surplus Russian gas not used domestically by Iran will be exported to other countries, Owji said, adding the annual value of the contract ranges between 10 billion to 12 billion dollars.
The Russian energy ministry did not immediately reply to a request for comment.
Gazprom has seen its gas supplies to Europe, once the source of two thirds of its gas sales revenue, plummeting to post-Soviet lows over the conflict in Ukraine. Last year it incurred losses of almost $7 billion, its first annual loss since 1999.
The amount supplied to Iran would translate into around 110 billion cubic metres of gas supply per year, on par with the combined capacities of Nord Stream 1 and Nord Stream 2 pipelines -- a total of four pipelines laid on the bed of the Baltic Sea from Russia to Germany. Three were damaged by blasts in September 2022 and one remains unscathed.
Iran sits on the world's second-largest gas reserves after Russia, and Moscow has long sought to make inroads into its natural gas business. U.S. sanctions have hindered Iran's access to technology and slowed the development of its gas exports.
Reporting by Elwely Elwelly, Dubai newsroom; Additional reporting by Vladimir Soldatkin; Editing by Alison Williams
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