SEATTLE (Oil Monster): Iran says it plans to develop a major gas pipeline capable of importing up to 110 billion cubic meters of Russian natural gas annually through Azerbaijan, although pricing and final commercial terms have not yet been completed.
Iranian Ambassador to Russia Kazem Jalali said the proposed pipeline could eventually carry up to 110 billion cubic meters of Russian natural gas per year.
The first major phase would target 55 bcm annually and could be completed within two to three years, according to Jalali.
The route would pass through Azerbaijan, which has been part of negotiations between Russia and Iran since the two countries began advancing the project in 2024.
The 55 bcm first phase is equivalent to roughly 150 million cubic meters of gas per day.
That figure is consistent with earlier statements from Iranian officials, who said Russia and Iran had reached preliminary agreement on annual supplies of up to 55 bcm through Azerbaijan.
Earlier Russian statements, however, envisaged starting with much smaller volumes of around 2 bcm per year before scaling up.
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The scale of the proposal is significant. A 55 bcm annual first phase would already rival some of the world's largest cross-border pipeline systems, while the 110 bcm long-term target would create a major new outlet for Russian gas and could strengthen Iran's role as a regional transit and swap hub. The commercial impact will depend on whether pricing, financing and infrastructure agreements are finalized.
Jalali said the main remaining step is agreement on gas pricing between the National Iranian Gas Company and its Russian counterpart.
Iranian and Russian officials have previously said most technical and contractual issues have been resolved, although no final long-term supply contract covering the full 110 bcm capacity has been publicly announced.
Before the new high-capacity pipeline is completed, Iran and Russia are considering use of existing regional gas infrastructure.
That would require rehabilitation of existing lines and coordination with Azerbaijan.
Earlier plans involved using Russian and Azerbaijani pipeline systems connected with Iran near Astara before additional capacity is built.
Officials are also discussing a gas-swap arrangement as a faster short-term option.
Under that structure, Russia would deliver gas to northern Azerbaijan while Azerbaijan would supply an equivalent volume to Iran from the south.
Such an arrangement would allow commercial flows to begin without waiting for the full new pipeline system to be completed.
The project comes as Russia continues redirecting natural gas exports after losing much of its former European pipeline market.
Iran, meanwhile, has large gas reserves but limited export capacity and high domestic consumption.
OilMonster previously reported that Iranian gas exports fell about 30% in 2024 to 8.97 bcm, highlighting the gap between the country's resource base and its current export reach.
The key milestone is a final gas-pricing agreement and formal commercial contracts between the parties.
Confirmation of financing, pipeline specifications, construction schedules and the exact route will also be needed before the 110 bcm long-term capacity can be treated as a committed infrastructure project.
Courtesy: www.pipeline-journal.net
