IGM Energy Commodities Analyst Douglas McDonald features in this month's Gas In Transition - a premium energy market intelligence service by Natural Gas World.
CASPIAN DEAL BREAKDOWN HIGHLIGHTS IRAN’S GAS SHORTCOMINGS
The impasse also highlights the delicate nature of Iran's domestic gas balance, as shortages have sent the use of Mazut – high sulphur fuel oil – in cement plants and power production rocketing upwards.
Provinces in northern Iran are set for deeper winter gas shortages after a disagreement between Azerbaijan and Turkmenistan led to the recent collapse of a tripartite Caspian gas swap deal. The gas trading arrangement, which has been in place since November 2021, was halted on January 4 with Baku seeing Turkmen gas as surplus to requirements, driven by its own growing export capacity and price differentials that rendered the arrangement far less commercially attractive. While the deal was not intended to have a long tenor, its breakdown hints at frustration from Azerbaijan regarding slow progress from the Turkmen side on the development of the shared offshore Dostluk oil and gas field, which had been agreed to at the same time as the swap. Direct gas sales to Iran have also bee... Click here to read the article in full at Natural Gas World
The author can be contacted via douglas.mcdonald@igmenergy.com