RoydadNaft –  The president of Iran Masoud Pezeshkian has hailed a long-term natural gas supply deal with Russia’s Gazprom that will help the country turn into a regional gas hub, bne Intellinews reports, citing a statement during a visit by Russia’s Prime Minister Mikhail Mishustin.

Gazprom and Iran’s National Iranian Gas Company signed a preliminary deal in June for the supply of natural gas volumes to Iran. In July, Iran news agency Shana revealed the volumes in the deal, which were set at 300 million cu m daily or 109 billion cu m per year.

At the time, Iranian oil minister Javad Owji said the volumes would be supplied for both domestic consumption and for re-export to neighboring countries. The cost for the construction of the pipeline to carry this gas would be covered by the Russian side, Owji also said in July, as quoted by Interfax.

The contract between Gazprom and NIGC was “a masterpiece of energy diplomacy that could create the preconditions for an economic revolution and ensure energy security for the region with the help of Iran,” the Iranian official also said.

President Pezeshkian this week echoed the sentiment, saying “We believe that if the important joint projects of Iran and Russia are implemented, they will create significant capacities for both countries in offsetting cruel sanctions.”

Iran has the world’s second-largest natural gas reserves, after Russia, but has been constrained in its ability to develop these because of U.S. sanctions targeting its energy industry specifically. The gas imported from Russia will be sold on to Turkey, Pakistan, and Iraq.

One deal for re-export is already in the works, with Turkey’s state energy major Botas. The company said last week it was in talks with the National Iranian Gas Company on the long-term supply of gas. The current deal between the two, for an annual amount of 10 billion cu m of gas, is set to expire in two years.