Potential for Gas Exports to EU
While energy experts like Craft maintain that there is some ambiguity and uncertainty with regard to foreign investment in Iran's oil and gas projects, Europeans are more optimistic.
After removal of the sanctions, European companies were first given the green light for investing in Iran's projects, specifically gas sector.
Since 2015 when Iran and six world powers reached a historic nuclear deal, dozens of MOUs and agreements have been signed. Companies from Germany, France and the UK have been keen to invest in Iran. But the desire of exporting gas to Europe faded very soon due to tough competition in the market. Russia holds a monopoly on gas supply to East Europe. Some other European countries have long been purchasing liquefied natural gas (LNG) from Qatar.
Add to this shipment of gas which needs infrastructure. As a result, Iran preferred to consume its gas domestically.
The chairman of Board of Directors of Ukraine's NAFTOGAZ, Andriy Koboyev, believes that there is a possibility for Iran to have some relationships with the Eastern Europe countries in the gas market.
"The gas market is big, while there is not that much stock constrains from Ukraine, but there are players who make sure that Iranian gas doesn’t arrive to Europe market. So, if these impediments can be resolved, Iranian gas can be exported to Europe; but this is a difficult task," he said.
Meanwhile, Iran is looking for other destinations for its gas.
Ruben Eiras, an advisor in Portugal's Ministry of Sea, said that Iran and Portugal were more than hopeful about future cooperation.
Iran is investing at Sines Port to commercialize LPG shipments, he said, adding that the two countries were focusing on infrastructure to distribute LPG in the African market.
By accomplishing this project, Iran plans to use its flares efficiently.
Eiras speaks on a positive note about gas cooperation between Iran and Europe, saying, “For what I know, if there is a will and investment capacity in both parts, this will lead to other cooperation as well.”
Iran great Potential in Renewables
It is imperative to know that besides gas, Iran enjoys potential in renewable energies. The country intends to increase the share of renewables in its energy mix up to 5% over the coming three years. Iran also plans to build windfarms.
Mark Jones is the CEO of EWT, a leading company in building localized turbines.
EWT has already installed turbines in the UK, Alaska, and China.
He said an Iranian company has demanded that EWT build turbines in Iran.
This kind of projects is suitable for Iran, Turkey and the Black Sea countries. There are local industries in Iran and Turkey and their sources of energy are not used effectively.
"There are a lot of local industries, and also these countries are poor on cheap energy. Even though there are a lot of resources but they are used somewhere else. So Iran is up to use most of its resources," he said.
However, this sector is faced with challenges. In Iran, most projects are financed by the government while renewable energy pertains to projects which are handled by the private sector. Therefore, operating such projects in Iran would need more time.
Jones said however that "once people believe it works, then it will take off."
"So the hardest part is starting it and make up to 1.2 or 3% of the energy basket purely from renewable energy," he added.
"It will take time for Iran to build the infrastructure for the renewable energy. Iran needs investments, new policies, and people to start the development process," he added.