Humble Beginnings
Until recently, Russia exported relatively small amounts of natural gas to Iran.
That changed when in 2024, Moscow and Tehran signed an agreement for Russia to supply up to 300 million cubic meters of gas to Iran daily.
Why Import?
It is often cheaper for Iran to import gas to supply its densely populated northern provinces rather than to deliver it there from the gas-rich Iran’s south, explains Stanislav Mitrakhovich, leading expert at the Russia’s National Energy Security Fund and at the Financial University under the Russian Government.
Azerbaijani Link
Transit of Russian natural gas via Azerbaijan is expected to begin via the existing infrastructure i.e. it does not require laying any additional pipelines, at this time.
Big Plans
First large-scale shipments of Russian gas to Iran via Azerbaijan, up to 2 billion cubic meters (bcm) annually, are expected to begin by the end of this year.
The volume of Russian gas exports can later be raised to as much as 55 bcm per year.
Gas Ambitions
Iran can itself become a major supplier of natural gas to global markets, assuming that it obtains and introduces the required technologies and finds a way to deal with Western sanctions, Stanislav Mitrakhovich believes.