Oil & Gas

Last week, Gazprom signed a gas deal with the Iranian National Gas Company (NIGC). This memorandum of understanding (MoU) is a significant step towards increased control over gas supplied through both pipelines and liquefied natural gas (LNG) to global markets. The start of regular gas transfers from Russia to Iran also aligns with Tehran’s recent offer to Moscow to establish a broader 'energy corridor' from Russia to the Persian Gulf.

This new MoU builds on the foundation of the Gulf Exporting Countries Forum (GECF), which transitioned from a loose alliance to a formal organization in 2008. The GECF, headquartered in Doha, Qatar, includes core members Russia, Iran, and Qatar, which together account for nearly 60% of the world’s gas reserves. The organization controls about 71% of global gas supplies, 44% of marketed production, 53% of gas pipelines, and 57% of LNG exports.

The Russia-Iran alliance, highlighted by the recent MoU between Gazprom and NIGC, aims to dominate the global gas supply matrix, covering both pipeline and LNG transport. This collaboration is evident in projects such as the development of the Kish and North Pars gas fields and the enhancement of the South Pars gas field. The transfers of gas from Russia into Iran’s pipeline network mark a vital early stage in these efforts.

The new transport corridors from Russia to Iran, extending to Turkey or the Mediterranean ports via Iraq, align with China’s Belt and Road Initiative (BRI). Recent high-level meetings between Iraq and Chinese officials have focused on linking Iraq’s Strategic Development Road program with China’s BRI. This integration will facilitate transport from Iraq’s key oil export hub in Basra to Europe, enhancing military and intelligence presence under the guise of securing oil and gas interests.