Iran and Russia’s Gazprom sign an energy cooperation agreement

Iran and Russia’s Gazprom sign an energy cooperation agreement

The National Iranian Oil Company (NIOC) and Russian gas producer Gazprom signed a memorandum of understanding worth some $40 billion on Tuesday, according to the Iran’s Oil Ministry News Agency, SHANA.

The agreement was signed during a virtual ceremony by the CEOs of both companies, on the day that Russian President Vladimir Putin will travel to Tehran for a summit with his Iranian and Turkish counterparts.

Gazprom will help NIOC in the development of the Kish and North Pars gas fields, as well as six oil fields, according to SHANA. Gazprom will also participate in the realization of liquefied natural gas (LNG) projects and the construction of export gas pipelines.

Iran has the world’s second largest gas reserves after Russia, but US sanctions have made it difficult to access the technology and slowed the development of gas exports.

Putin’s visit to Tehran is closely watched as Russia’s invasion of Ukraine has reshaped the global oil and gas market, driving prices to high levels that contribute to rising costs of living and consumer inflation.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.