Thursday, May 23, 2024

Former Iran official: Further delay in JCPOA signing means Iran will lose oil markets

The Iranian oil ministry’s former director of international affairs says further delay in the revival of the 2015 nuclear deal, JCPOA, means Iran will lose oil markets.

In an interview with the Iranian Labor News Agency, ILNA, Ali Majedi said there is no way Iranian gas will reach Europe in the short term unless the JCPOA opens the way, and should Iranian oil is pumped to the market, it will be beneficial for Europe.

According to Majedi, energy serves as a deterrent and the more the world depends on Iran, the Islamic Republic will have more tools to stand up against its adversaries.

Majedi also said Iran needs large investments in oil and gas industries, noting that at least 200 billion dollars is at stake in this regard.

He said without foreign investment, Iran cannot export gas.

Majedi added that the US is now using this opportunity to partly satisfy Europe’s energy needs through LNG lines given that Russia is under Western sanctions because of its invasion of Ukraine.

At the same time, he stressed, it takes time to implement LNG plans and Europe will certainly reconsider its energy supply in the medium term and will meet its needs by purchasing gas from the US.

Majedi however said this cannot totally eliminate Russia from the market because the country will easily shift its oil to the markets of China and India and will have similar plans for its gas too.

He said the Europeans agreed to Nord Stream 2 gas pipeline to import energy from Russia despite opposition from the US but the Ukraine war disturbed all plans and made the Europeans skeptical and forced them to diversifying their energy sources.

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