The capacity could be up to 55 billion cubic meters per year, the Russian leader has said
Russian President Vladimir Putin has expressed support for the construction of a gas pipeline to Iran which could eventually supply up to 55 billion cubic meters (bcm) of gas to the Islamic Republic annually. Speaking to reporters after talks with Iranian President Masoud Pezeshkian on Friday, Putin acknowledged challenges, but said the project is moving forward.
The pipeline project is part of a broader strategic agreement between Russia and Iran signed on Friday, as well as a memorandum signed by Russian state gas major Gazprom and the National Iranian Gas Company in June 2024 and aimed at facilitating Russian gas supplies to the Islamic Republic.
“There are always difficulties in coordination and pricing, technical issues… but the work is moving forward. The project is in progress,” Putin said, responding to a reporter’s question about the pipeline.
“Regarding the volumes of possible supplies, we believe that we need to start with small volumes, up to 2bcm, but in perspective it could reach a volume of 55 bcm of gas per year.”
According to Russian Energy Minister Sergey Tsivilev, the pipeline will run through Azerbaijan, with the route already fixed. Speaking to reporters on Friday, he said Moscow and Tehran are currently finalizing the details, such as pricing for future supplies.
“The volumes have already been approved. But the price is always a commercial issue, a search for a compromise, so working groups have been created on both sides, and specialists are developing an approach to pricing,” he stated.
While Iran produces around 270 bcm of gas annually and holds the world’s second-largest gas reserves after Russia, the country faces a domestic energy deficit due to high consumption and under-investment caused in part by US sanctions. With a population of approximately 89 million, Iran has one of the world’s highest levels of domestic gas usage.
The gas pipeline project will align with Tehran’s plans to establish an international gas hub in collaboration with Russia, Qatar, and Turkmenistan, announced in 2023. Under the terms of the memorandum with Gazprom, Iran will be able to resell the excess imported gas to other countries, which is expected to bring the Islamic Republic about $10-12 billion annually.
At the press conference, Putin also highlighted potential collaboration with Iran in the energy sphere beyond natural gas, mentioning “a possible area of cooperation in the oil sector” and a project in nuclear energy already underway.
