TEHRAN (PIN) -- Since natural gas is a comparative advantage for Iran in energy sector, the ninth government has adopted a principle policy to increase the country’s share from global gas market while setting aside enough gas to be injected into oilfields.

Iran’s huge gas reserves and existence of good markets in the region in addition to Iran’s access to those markets require Iran to adopt an active economic diplomacy and pave the way for signing gas export contracts to those markets. It seems that the ninth government has been successful in this regard during two years that have passed since its inception.   ------------------ Gas, future fuel
Due to increased willingness of developed and developing countries to develop gas resources as one of the strategic fuel materials and since that fuel is quite environment-friendly, the natural gas is among those fossil fuel which will be in high demand during the next decade compared to other energy carriers.
According to studies carried out thus far, annual growth rate for gas consumption in the world has been predicted at an average of about 3.1 percent between 1997 and 2020. The figure will stand at 5.5 percent in developing countries and at 1.2 percent in developed states. Therefore, European countries will be at their best position in 2020 with a gas consumption growth rate of 2 percent while developing Asian nations will registered an annual consumption growth rate of 7.9 percent while the corresponding figure for the Latin American states will stand at 7.5 percent.
Iran has been recognized as one of the most important gas consumption markets in decades to come. Gas consumption growth rate in Iran has increased at an average annual rate of about 7.4 percent between 1990 and 1994 and the figure further rose to about 12 percent between 1994 and 1999.
During five years ending in 2006, average annual growth rate for gas consumption in the country stood at about 10 percent while average annual consumption in the Middle East during the same period stood at about 3 percent. This issue makes investment in developing natural and liquefied gas resources of the country a necessity.
According to current estimates, share of oil in supplying energy to the world will decrease from 41.3 percent in 2000 to 39.2 percent in 2020 while share of gas in supplying energy to the world will increase from 22.6 percent in 2000 to 26.5 percent in 2020.
Iran enjoys about 27 trillion cu. m. of natural gas resources (over 15 percent of global reserves) and, thus, stands high in global gas industry. Since those reserves have been used only for the past 100 years, the country can increase its share of global energy markets by making suitable investments.
At the same time, Iran only accounts for one percent of gas exports in the world and such countries as Algeria and Malaysia, whose gas reserves are much smaller that Iran’s, account for a bigger share from global gas export market.
According to official reports, it seems that the ninth government has been successful in developing gas reserves and increasing gas exports. If all unfinished plans for developing gas fields are implemented in the future, the above goals would be met.   ------------------ Iran’s natural gas markets
Undoubtedly, Iran’s huge gas reserves and the country’s global rating are other comparative advantages of Iran compared to other countries provided that Iran makes suitable investment and avails of needed technologies to develop its gas exports. Existence of potential markets and access to markets in neighboring countries requires that Iran adopt an active economic diplomacy and pave the way for signing gas export contracts to those markets.   ---------------- A. Turkish and European markets
According to current studies, Turkey will increase gas imports from 20 billion cu. m. to 30 billion cu. m. by 2010, and this will provide Iran with a good opportunity to earn hefty revenues either through direct gas sales or via gas swap with Turkmenistan.
The European markets are also experiencing a steep rise in gas demand and establish a good market for the Iranian gas exports through that country.
The government has tried to reach an agreement with Turkey with regard to gas exports. In late July, former minister of petroleum, Seyyed Kazem Vaziri Hamaneh, and his Turkish counterpart met in Turkey and signed the agreement.
According to the agreement, Iran will export 30 billion cubic meters of natural gas through pipeline and via Turkey to Europe. Turkey will also take part in developing part of the huge South Pars gas field, whose gas will be also exported to Europe.
The Turkish energy minister also visited Iran on August 19 to discuss details of the agreement with the Iranian side. It was decided that Turkish side should invest in phases 22-24 of South Pars gas field and develop the said phases through buyback contracts.
Also, on the basis of the agreement, Iran and Turkey will establish a joint company to build a pipeline from Assaluyeh, in south Iran, up to Turkish border and therefrom to Europe.
According to the latest reports, Gholamhossein Nozari, caretaker of the Iranian Ministry of Petroleum is to pay a visit to Turkey in the near future to finalize the agreement.   ------------------ B. Pakistan and Indian markets
South Asia is among regions which are expected to undergo major growth in gas consumption. Pakistani and Indian markets are among the most important markets in south Asia.
Pakistan’s domestic gas consumption stood at about 10.6 billion cu. m. in 1989, which increased to about 17.8 percent in 2000. Natural gas demand in India is also on the rise; so that, experts maintain that growth in natural gas consumption in India will stand at about 8.7 percent between 2007 and 2020. The figure is expected to hit about 13.2 billion cu. ft. per day in 2020. Therefore, the populous country is sure to experience major growth in its gas demand.
At the same time, the sixth round of negotiations over peace pipeline project started in New Delhi in late June and was a decisive step toward realization of the plan. The three involved sides reached good agreements and, the Iranian authorities have announced that as soon as India and Pakistan resolve their differences, Tehran would be ready to sign the final agreement.
At the same time, Islamabad and New Delhi have frequently emphasized on the need to build the pipeline and have called it a measure in line with promoting peace and security in the region.   -------------------- Gas injection into oilfields
According to official figures, at present, about 80 million cu. m. per day gas is injected into oilfield and the figure is projected to rise to 300 million cu. m. per day by 2015. In this way, while boosting and keeping up its oil output, Iran has tried to expand gas reserves and has been successful in this regard.
In conclusion, it seems that in view of the ninth government’s determination to expand Iran’s gas export markets, especially in neighboring countries, we would soon witness implementation of more projects in cooperation with regional countries. This will help Iran achieve its goals with regard to increasing oil and gas production and supplying consumer countries