050726 - Iran, Ukraine ink 30b cu. m. gas export MOU

TEHRAN – Iran and Ukraine inked a memorandum of understanding here on Monday on export of 30 billion cubic meters of natural gas to Ukraine. The document was signed by the visiting Ukrainian deputy minister of energy.
Commenting on the MOU, Iran’s deputy oil minister Mohammad Hadi Nejad-Hosseinian said, “The Ukrainian counterpart has expressed his country’s interest in importing an annual 20 to 30 billion cubic meters of natural gas from Iran for domestic use.” Ukraine has also agreed to allow Iran using its
infrastructures for the transit of 20 billion cubic meters of natural gas to Europe, the official added.

“Both sides have as well decided to invite the en route countries (Armenia, Georgia, and Russia) to establish a five-sided committee for following up study, design and construction of this project,” he emphasized.

The contract parties are said to be National Iranian Gas Export Company and Ukrainian Oil and Gas Company.

“Given the existing problems on Iran’s gas export to Europe via Turkey, the Ukrainian alternative opens up new horizon that is of important export consideration for Iran,” he concluded.

About 128 billion cubic meters of natural gas from Russia, Turkmenistan and other countries go through Ukrainian pipelines per year, meeting about 50 percent of European demand. Ukraine receives millions in transit revenues annually from shipping Russian natural gas to Europe through its pipelines.

Given the growing demand for gas in Europe, Tehran should ship gas through Ukrainian pipelines in the future.
Tehran Times Economic Desk

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