President Raisi Solved The Problem Rouhani Created
WANA (Jun 2) – Farhad Charedan, an economic expert in Iran, believes that the gas relationship with Turkmenistan has been one of the most strategic and vital relations of Iran’s energy diplomacy in the region. Using this northeastern neighbour, the fourth country with gas reservoirs in the world is the best solution for Gas supply in the northern and northeastern areas of Iran, which face a drop in gas pressure yearly.
Another advantage of Turkmen gas is its low price compared to other countries. For example, in the past months, according to the claim of Wood Mackenzie firm, the cost of gas delivered from Turkmenistan to China has reached 23.8 cents, despite its price increase.
The contract for the import of gas from Turkmenistan was concluded for 45.5 million cubic meters per day and between 14 and 16 billion cubic meters per year. The Ahmadinejad government’s repayment method was clearing gas by exporting goods such as trucks, buses, petrochemical products, and pipes, implementing construction projects, and providing technical-engineering services.
In Hassan Rouhani’s administration, by changing the method of settling the debt of both parties, he obliged himself to pay the overdue amount in cash, but he could not pay. The late fee of 2 billion dollars was announced. Rouhani could not pay and thus created another problem for Iran’s economy. That problem was the country’s gas shortage and the stoppage of imports from Turkmenistan.
As a result, despite Iran’s opportunity to take advantage of this contract and even strengthen gas interactions with Turkmenistan, finally, in 2016, after 20 years, due to financial disputes, the export of Turkmenistan’s gas to Iran was stopped. In 2018, Turkmenistan declared a complaint to international arbitration in Switzerland and condemned Iran.
The treatment of Hasan Rouhani’s government with Turkemanistan brought the gas deficit to 200 million cubic meters in 2021. The gas cut in Turkmenistan damaged many industries, and relations between Iran and Turkmenistan became cold.
In the meantime, Iran lost the opportunity to re-export gas. Gas that could be sold at a higher price.
In the last week, in Tehran, the obstruction created by Hassan Rouhani and his oil minister, Bijan Zanganeh, was unlocked by President Raisi’s administration. A top official from Turkmenistan headed by Berdi Mohammadov and a high-ranking delegation came to Tehran. Iran paid the debt of 1.6 billion dollars to the previous government, and a contract of 10 million cubic meters was signed to restart the interactions in the energy field.
From the perspective of energy experts in Tehran, Turkmenistan’s gas re-export policy is wise to reach Iran’s regional gas hub.