Earlier this year, a landmark deal was made between the U.S., the E.U. and Iran. It called for a cease in Iranian nuclear developments for the next ten years in return for the Western countries lifting sanctions held on oil and gas exports from Iran.
The oil markets shivered at the thought of another country adding to the glut. But as we reported before, it may not be oil that Iran focuses on to repair its sanction-battered economy.
Instead, the country may use its natural gas resources to re-enter the global markets.
In the same report we noted that Iran would need some major infrastructure improvements and expansions to facilitate such a re-entrance.
This week, Spain has stepped up to support this cause.
You see, Spain is also in need of infrastructure for exporting natural gas. In a meeting between Iranian Oil Minister Bijan Zanganeh and Spanish Industry, Energy, and Tourism Minister Jose Manuel Soria, the two countries decided to pool their efforts on this front.
Spain also has an interest in selling supplies from the South Pars gas field, which is jointly owned by Qatar and Iran. The meeting confirmed Iran’s willingness to assist in Spain’s development in this area.
The cooperative efforts will give both countries an extra line of support, both politically and economically, to better improve their infrastructures and businesses.
Additionally, a meeting between the National Iranian Oil Company and Spain’s Respol began plans to jointly export Iranian oil and gas to European consumers.
As it is now, sanctions will soon lifted, infrastructure plans will be set in motion, and a customer base is being solidified — so it seems like Iran is about prepared to join the oil and gas markets in full swing.
And with the timing of the sanctions, this could happen as soon as the beginning of next year.
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