RoydadNaft –  Iran and Russia have agreed to transfer 55 billion cubic meters of Russian natural gas to Iran each year by land pipeline through Azerbaijan, and the deal has entered the implementation phase after an initial memorandum signed in July 2024.

According to Roydad Naft, citing 361 Degree Iran, Iran’s ambassador to Russia, Kazem Jalali, said in Moscow during Government Week that talks between Tehran and Moscow on executing the Russian gas-to-Iran project have made significant progress.

Jalali said that after the memorandum of understanding on Russian gas supplies to Iran was signed in July 2024 between the National Iranian Gas Company (NIGC) and Russia’s Gazprom, negotiations between the two countries’ officials to finalize an implementing agreement have continued.

He added that intensive talks have been held between Iran’s Petroleum Ministry and Gazprom and that consultations are still under way.

Gas to move through Azerbaijan

On the latest understandings, Jalali said Tehran and Moscow have agreed that the gas will reach Iran by onshore pipeline crossing Azerbaijan.

He said the pipeline’s initial capacity has been set at 55 billion cubic meters a year, or about 150 million cubic meters a day.

Jalali said the two sides have reached agreement on the project’s main principles and framework and that it is no longer at an early stage. Only one or two issues remain to be resolved on the Russian side, he said, and those points have been discussed in meetings with Gazprom officials.

Pezeshkian personally tracking the project

On timing, Jalali said a precise start date cannot be given under current conditions because the schedule depends on finalizing the contract and on technical and operational issues.

He said that given the project’s importance, the hope is that talks and implementation steps will move faster.

The ambassador stressed that President Pezeshkian is personally following the matter and demanding results from officials, and that Iran’s Petroleum Ministry and the Iranian embassy in Moscow are also pursuing completion of the project.

Strategic energy project for Iran and Russia

The cooperation memorandum on transferring Russian natural gas to Iran was signed in July 2024 between NIGC and Gazprom. Technical talks then continued on the route, capacity, and implementation mechanism.

Under the understanding, Russian gas is to be delivered to Iran by land pipeline through Azerbaijan and handed over to the Iranian side at Astara.

In the latest consultations, Jalali and NIGC Managing Director Saeed Tavakoli also met Gazprom CEO Alexey Miller on progress under the strategic gas-industry cooperation memorandum.

If the contract is finalized and the project is carried out, it could expand energy cooperation between Tehran and Moscow and strengthen Iran’s position in regional energy balances.