Russian energy giant signs memo with Iran on gas supplies

Fox News carries an article about Russian energy giant Gazprom which has signed a memorandum with the National Iranian Gas Company, Caliber.Az reprints the article.

Russian energy giant Gazprom, represented by GAZP.MM, has entered into a memorandum with the National Iranian Gas Company (NIGC) to provide Russian pipeline gas to Iran.

No specifics from the memorandum, signed during Gazprom head Alexei Miller's visit to Iran, were disclosed at the ceremony attended by Iran's interim president Mohammad Mokhber.

Iran possesses the world's second-largest gas reserves, following Russia, and Moscow has been eager to expand its presence in Iran's natural gas sector. However, US sanctions have restricted Iran's access to technology and impeded the growth of its gas exports.

Due to the Ukraine conflict, Gazprom's gas sales to Europe, which previously accounted for two-thirds of its revenue from gas sales, have dropped sharply to levels not seen since the post-Soviet era. Last year, the company reported losses of nearly $7 billion, marking its first annual loss since 1999.

In July 2022, Gazprom signed a memorandum of understanding on energy cooperation valued at approximately $40 billion with the National Iranian Oil Company (NIOC). However, no specific agreements have materialized from that accord.

According to the agreement, Gazprom was expected to assist NIOC in developing the Kish and North Pars gas fields, as well as six oil fields. Additionally, Gazprom was to participate in the completion of liquefied natural gas (LNG) projects and the construction of gas export pipelines.