Russia and Iran signed a memorandum of cooperation in the gas sector

30 Mar, 2017

Russia and Iran are changing the Armenian gas market play rules, writes referring to the Russian media.

Iran and Russia agreed on cooperation in the gas sector, the RIA Novosti reported. The memorandum of cooperation in the gas industry sector was signed following the negotiations between Russian President Vladimir Putin and Iranian President Hassan Rouhani in Moscow. The document defines the cooperation between the Gazprom and the National Iranian Oil Company (NIOC).

The companies also concluded a confidentiality agreement. 

Gazprom plans to exchange the electrical energy generated at the Hrazdan Thermal Power Plant (HTPP) in Armenia for the Iranian gas, the Vedomosti reported earlier. According to Alexey Miller, Chairman of the Management Committee of Gazprom, the Company sees the potential for increasing work efficiency in the Armenian market as a result of exchanging the electrical energy generated at the fifth block of the HTPP for the Iranian gas.

Iran settled all questions related to the debt to Gazprom for the development of the South Pars field in December 2016, the RIA Novosti reported.  Gazprom participated in the facilities construction project of the second and third sections of the South Pars field jointly with the French company Total and Petronas, Malaysia. NIOC has been paying compensations to project participants, however payments have been suspended since 2010 due to the strengthening of Western sanctions against Iran.

Other news