Reuters:

Russian President Vladimir Putin announced plans on Friday to build a gas pipeline to Iran aimed at eventually transporting up to 55 billion cubic metres (bcm) per year to the West Asian country.

Following are some details and background about cooperation between Iran and Russia in the gas sector:

Iran has the world's second-largest gas reserves after Russia, but U.S. sanctions have hindered access to technology and slowed development of gas exports.

The National Iranian Oil Company (NIOC) and Russian energy giant Gazprom (GAZP.MM), opens new tab signed a memorandum of understanding worth around $40 billion in July 2022.

Gazprom pledged to help NIOC in the development of the Kish and North Pars gas fields and also six oil fields. Gazprom also planned to be involved in the completion of liquefied natural gas (LNG) projects and construction of gas export pipelines.

Gazprom and the National Iranian Gas Company (NIGC) subsequently signed a memorandum of understanding in June 2024 on supplying Russian pipeline gas to Iran.

The eventual target of 55 bcm of gas per year through the proposed pipeline announced by Putin on Friday is around the same volume the damaged Nord Stream 1 pipeline was exporting from Russia to Germany.

Initial gas supplies to Iran from Russia may total 2 bcm per year. The route may transit via Azerbaijan, Interfax news agency quoted Russian Energy Minister Sergei Tsivilev as saying.

Czech billionaire Daniel Kretinsky is among potential suitors approached by Berlin about a purchase of state-owned utility Uniper.

IRAN-PAKISTAN GAS PIPELINE

Further plans could involve the Iran-Pakistan gas pipeline, as Russia has long planned to participate in the project, which has stalled due to sanctions against Tehran and political rows.

India was initially involved in the project but it withdrew in 2009 following pressure from Washington. A political standoff between India and Pakistan also complicated the pipeline plans.

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