Iran ready to purchase Russian gas

Iranian Oil Minister Mohsen Paknejad said today that Tehran has finalized virtually all key terms of a contract to purchase Russian natural gas. According to him, the Islamic Republic is prepared to take up to 55 billion cubic meters of fuel annually via a pipeline transiting Azerbaijan.

Mohsen Paknejad confirmed that Iranian authorities have fully agreed on the core conditions of the gas supply deal with Russia.

Under the agreement, up to 55 billion cubic meters of Russian gas would be delivered to Iran each year through a pipeline running across Azerbaijan.

The contract also grants Iran the right to re-export surplus volumes to other countries, which could generate as much as $12 billion in annual revenue for Tehran over the 30-year term of the deal, the oil ministry said in a statement.

Earlier, Russian Energy Minister Sergey Tsivilyov paid a working visit to Iran, during which Russia and Iran discussed the implementation of joint projects in the gas industry as well as advancement in preparing bilateral cooperation agreements.