Iran’s Prospects of Return to the Gas Market and Other Stakeholders

Abstract

:Soon after the signing of the nuclear deal, foreign companies rushed to Iran to revive their businesses. Sanctions had been imposed on the Islamic Republic post-1979 revolution and soon after expanded in 1995. During the years of sanctions, Iran had to a large extent become self-reliant with no major developments, yet continued to sustain itself to be a promising economy. However, diversification has not changed the face of the country as it remains largely dependent on hydrocarbons. The contention in this article is that the ease of US sanctions on Iran, will see an energy shift that will realign the regional balance of power vis-a-vis other players like Saudi Arabia. The article further evaluates how the Organization of Petroleum Exporting Countries (OPEC)’s concern for the Gas Exporting Countries Forum (GECF), asserting itself as a power, that would dictate future energy share and pricing. GECF accounts for 67% of the world’s proven gas reserves and 64% of global LNG exports. The article will also attempt to identify Qatar’s position, if at all it wishes to facilitate Iran in achieving a gas exporter status. Finally, the article will attempt to analyze Iran in the GECF and whether it can work alongside other gas majors.