Iran offers to buy all of Shah Deniz gas

BAKU, Azerbaijan, June 4 (UPI) -- Iran moved forward with proposals to purchase the entire gas volume from the Azeri offshore Shah Deniz gas field, the Azeri energy minister said.

The Shah Deniz gas field in the Caspian Sea is one of the largest finds in recent decades, with roughly 15 trillion cubic feet of natural gas reserves.

There are seven countries, including supermajors BP and the French Total, in developmental contracts at Shah Deniz.

While recognizing the Azeri option for diverse partnerships, Azeri Energy Minister Natig Aliyev said Iran has come forward with an option to purchase the entire gas volume from Shah Deniz.

"There are a lot of proposals on the purchase of gas from the Shah Deniz deposit. For example, Iran has now proposed purchasing the entire gas amount from this deposit," he said. "However, Azerbaijan, being in favor of diversification, will not consider just one option."

Reza Hosseini, planning director at the National Iranian Gas Co., told the Trend news agency Azeri gas could reach vital export markets with Iranian help.

"We can create conditions to export the Azerbaijani gas to Turkey via Iran," he said.

His comments come on the heels of a proposal by Russian gas monopoly Gazprom to make a similar offer. Aliyev said the State Oil Co. of the Azerbaijan Republic was in talks with the energy giant on gas purchases, RIA Novosti reports.

"However, this is a lengthy process as it involves long-term rather than short-lived cooperation," he said. "That is why, negotiations with Gazprom will continue."