A Post-Sanctions Iran and the Eurasian Energy Architecture
The removal of international sanctions on Iran carries the potential to radically restructure the Eurasian energy architecture
and, as a consequence, reshape Eurasian geopolitics. The Euro-Atlantic community’s interests will be most impacted by Iran’s choice of export destinations for its natural gas delivered by pipeline. By defining the pattern of major energy flows through long-term supply contracts and costly pipeline infrastructure investment, the pattern of Iran’s piped gas exports in the immediate post-sanctions period will influence the development of both China’s “One Belt, One Road” (OBOR) initiative and the European
Union’s “Eastern Neighborhood” policy.
This report estimates Iran, within five years, will likely have 24.6 billion cubic meters of natural gas available for annual piped gas exports beyond its current supply commitments.
Not enough to supply all major markets, Tehran will face a crucial geopolitical choice for the destination of its piped exports. Iran will be able to export piped gas to two of the following three markets: European Union (EU)/ Turkey via the Southern Gas Corridor centering on the Trans-Anatolian Natural Gas Pipeline (TANAP), India via an Iran-Oman-India pipeline, or China via either Turkmenistan or Pakistan.
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