Top Iranian energy official warns Europe of dangers of low gas prices
IRNA web site, Tehran
20 Oct 04
Brussels, 20 October: The current high oil prices resulting partly
form insufficient supplies should signal a warning to gas consumers,
particularly in the European Union, warned Nezhad-Hoseynian, deputy
minister for international relations in Iran’s Oil Ministry.
Speaking at an international energy conference in Brussels Wednesday
20 October , he noted that in the past few years low oil prices
hampered investment in production projects which resulted in the
current undesirable situation.
“The same scenario can happen to natural gas, given the current low
gas sales prices,” said Nezhad-Hoseynian.
“Energy transit in Eurasia: challenges and perspectives” is the theme
of the 2-day conference which started on Tuesday.
The conference, organized by the Energy Charter Treaty (ECT) has
brought together representatives of governments, businesses and
academic community from Europe, Central Asia and the Middle East to
discuss the existing legal framework for energy transit and future
perspectives for ensuring unimpeded flows of energy.
The Brussels-based ECT was formed in early 1990s to help maintain
energy security in Europe. It has been signed or acceded to by
fifty-one states.
Nezhad-Hoseynian stated that gas pricing mechanisms have always been a
controversial issue between suppliers and customers.
He said Iran has the potential to export natural gas both to the EU
markets and the emerging markets with huge demands such as India,
Pakistan, China and even Japan.
“Iran the biggest natural gas producer and consumer in the Middle
East, with the second largest proven natural gas and oil reserves, is
emerging as a major supplier of natural gas to the world,” he said.
Nezhad-Hoseynian said Iran has plans to increase oil production
capacity from the present 4.2m b/d to around 6m b/d in 2015 in order
to maintain its current share in OPEC’s production.
The Islamic Republic also has plans to increase its gas production
capacity from 130bn cm/y to 300bn cm/y in the next ten years and to
400bn cm/y in the next 20 years.
Iran is planning to invest some 100 billion dollars in oil and gas by
the year 2015. During the past seven years, Iran has invested more
than 46 billion dollars in this sector, 65 per cent of which have come
from foreign investors.
He noted that Iran is exporting gas to Turkey and very soon the
Islamic Republic will start exports to Armenia and Naxcivan and the
UAE.