Gas Export to Europe Difficult but Feasible
As far as energy is concerned, one cannot limit himself to a single viewpoint. Market developments, methods of cooperation with various countries, innovations and forecasts are among services provided by consulting agencies.
Established in 1961, Atlantic Council offers consulting services on international issues. It organizes annual conferences on different issues. It last held an energy conference in Istanbul this summer. Representatives of major oil and gas companies, senior analysts and energy officials from a variety of countries attended the event. The conference focused on energy market, particularly gas and renewable energies.
Iran was highlighted in this conference. In the post-sanctions era, gas-rich Iran is reentering world energy market.
Over the past four years, Iran has put a great effort into reshaping its energy policy, tempting foreign investors back and revitalizing its oil and gas industry. Hence, it reconsidered its ambitious project to export gas to Europe. Iran's abundant gas deposits have largely attracted major companies which wish to forge cooperation with Iran. Nonetheless, a long road lies ahead of Iran to become an influential player in the petroleum industry. Iran's standing as a major player in the gas and oil market is undeniable; however, foreign companies keep watching closely ongoing developments in Iran.
The Atlantic Council 2017 in Istanbul was proof of the potential comeback of Iran as an influential producer and exporter of oil and gas, analysts and government officials who attended the event said.
For the time being, one of the most important issues for Iran is to attract severely-needed foreign investment. Since sanctions have been lifted, Iran has signed agreements with big companies on various gas projects. Once again giants like France's Total and Royal Dutch Shell are coming to invest in Iran.
Everything was on track before unprecedented challenges arose. US President Donald Trump, who took office in January, has pursued a different political approach towards Iran. The managing director and global head of RBC capital market, Halima Craft, believes that although Iran is a major player in energy market, further investment in its gas sector depends on the US politics.
“When you look at how the US sanctions are structured, you can see how they are extraterritorial. The US has not invested in Iran after 1979. Hence, essentially the US says to foreign investors, you can invest in Iran or you can access the US capital market,” she told Iran Petroleum.
Her remarks come true when one takes into account Total's change of position in the wake of the election of Trump as US president.
However, Iran's Minister of Petroleum Bijan Zangeneh said recently that the agreement with Total for the development of Phase 11 of South Pars gas field would be finalized before the current administration of President Hassan Rouhani bows out.