Gas Exporting Countries and the challenge of price and environment

Addressing Russian President Vladimir Putin and leaders of seven other countries including Algeria, Nigeria and Venezuela, Rouhani told the Gas Exporting Countries Forum (GECF) that Iran was seeking global partnerships to develop its vast oil and gas reserves.

But Kachikwu said that the GECF countries faced a number of challenges, emphasizing the need for “enhanced cooperation and coordination among GECF member countries to promote gas”. Iran said earlier today it planned to boost oil production by 1 million barrels a day within the next 5-6 months.

He further added that the ongoing summit will pave the way for state members to establish friendly ties.

He said the country was taking the steps because natural gas was fast evolving as the fuel of choice for sustainable development in view of its impressive suitability for environmental protection and lower cost of supply in comparison with fossil fuels.

“The Islamic Republic of Iran will take significant steps in gas production and export in the coming years and this will be beneficial to all nations and humanity’s health, as well as saving the environment”.

Observer countries are the Netherlands, Iraq, Oman, Peru, Azerbaijan and Norway. It is considering to build a large pipeline network that would connect its huge South Pars gas field with European customers. “However, the main thing – future consumers should hold the investment risks on a par with gas producers”, Putin said. This will be his third meeting with Rouhani this year.

Before 2012, when western sanctions were intensified on Iran, the country’s crude exports stood at 3.7 million bpd.

The decision follows a landmark deal between six world powers and Tehran in July, under which Iran agreed long-term curbs on a nuclear program that the West has suspected was aimed at creating a nuclear bomb.