Top Iranian energy official warns Europe of dangers of low gas prices
Brussels, Oct 20, IRNA -- The current high oil prices resulting partly form insufficient supplies should signal a warning to gas consumers, particularly in the European Union, warned Nejad-Hosseinian, deputy minister for international relations in Iran's Oil Ministry.
Speaking at an international energy conference in Brussels Wednesday, he noted that in the past few years low oil prices hampered investment in production projects which resulted in the current undesirable situation.
"The same scenario can happen to natural gas, given the current low gas sales prices,'' said Nejad-Hosseinian.
"Energy transit in Eurasia: challenges and perspectives'' is the theme of the 2-day conference which started on Tuesday.
The conference, organized by the Energy Charter Treaty (ECT) has brought together representatives of governments, businesses and academic community from Europe, Central Asia and the Middle East to discuss the existing legal framework for energy transit and future perspectives for ensuring unimpeded flows of energy.
The Brussels-based ECT was formed in early 1990s to help maintain energy security in Europe. It has been signed or acceded to by fifty-one states.
Nejad-Hosseinian stated that gas pricing mechanisms have always been a controversial issue between suppliers and customers.
He said Iran has the potential to export natural gas both to the EU markets and the emerging markets with huge demands such as India, Pakistan, China and even Japan.
"Iran the biggest natural gas producer and consumer in the Middle East, with the second largest proven natural gas and oil reserves, is emerging as a major supplier of natural gas to the world," he said.
Nejad-Hosseinian said Iran has plans to increase oil production capacity from the present 4.2 mb/d to around 6 mb/d in 2015 in order to maintain its current share in OPEC's production.
The Islamic Republic also has plans to increase its gas production capacity from 130 bcm/y to 300 bcm/y in the next ten years and to 400 bcm/y in the next 20 years.
Iran is planning to invest some 100 billion dollars in oil and gas by the year 2015. During the past seven years, Iran has invested more than 46 billion dollars in this sector, 65% of which have come from foreign investors.
He noted that Iran is exporting gas to Turkey and very soon the Islamic Republic will start exports to Armenia and Nakhichevan and the UAE.
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