Salient to Investors:
Iran would be a superpower in global energy markets if reserves in the ground were the measuring stick – only Russia has more oil and gas reserves. The CIA reports proven natural gas reserves in 2014 (in cubic metres) in Russia were 47,800,000,000,000, in Iran 33,800,000,000,000, in Qatar 25,070,000,000,000, in the US 8,734,000,000,000, in Saudi Arabia 8,235,000,000,000.
Jamie Ingram at IHS said a nuclear deal with Iran has to happen this year because there is so much political will on both sides. Ingram said Iran is keen to compete with Russia, so Europe is a potential market.
Iran wants its power industry to use more gas and less oil so has ambitious plans to increase significantly gas production in the coming years.
The surplus of LNG in the world is pushing prices lower, and the US and Australia are set to increase exports massively in the coming years.
Valerie Marcel at Chatham House said the main hurdle in Iran’s gas export ambitions has always been price, so without a firm commitment from buyers, no pipeline infrastructure will be built.
Europe is looking to wean itself off Russian gas, while Iran is looking for diplomatic leverage that would make the re-imposition of sanctions far harder to countenance.
Read the full article at http://www.bbc.com/news/business-32899264
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