By Luke Pachymuthu
ABU DHABI, Feb 11 (Reuters) - Iran's attraction as an
alternative source of gas supply to Europe is slowly gaining
momentum following a crisis over Russian gas supplies in
January, top industry oil executives said on Wednesday.
A price dispute between Russia and Ukraine last month shut
the transit route via which Europe receives a fifth of all its
gas, and led to the most serious supply disruption for years.
[]
"What we have finally learned in Europe this January is that
Russia proved to be an unreliable supplier, it was a very hard
lesson for us," said Vaclav Bartuska, a Czech energy security
official, on the sidelines of an energy conference in Abu Dhabi.
"But we can live without gas from Russia, and while it will
be costly, complicated and expensive and could take up to 10
years we can still do it," he told Reuters.
Bartuska said the options for Europe were either Qatar, the
world's largest LNG exporter with the capacity to produce 38
million tonnes per year, or Iran which sits atop of the world's
second largest gas reserves next to Russia. []
Royal Dutch Shell <RDSa.L>, which delayed decisions on
multi-billion dollar investments in Iranian liquefied natural
gas (LNG) plans last year due to political tension, also sees
Iran as an alternative supply source.
"With Iran's enormous reserves, Iran will be an important
player in the region and in Europe," said Martin Trachsel, vice
president at Shell's Gas & Power unit in the Middle East.
Iran has not yet exported any LNG but says it will be able
to produce 77 million tonnes a year by 2014, more than double
Qatar's output after nearly two decades of steady investment.
Companies like Spain's Repsol <REP.MC> with large
investments in Iran's energy sector remain cautiously
optimistic.
"For us at the moment the Persian LNG project is very
important, and we are continuing to talk with the NIOC (National
Iranian Oil Company) and Shell about moving the project
forward," said Mauricio Mariaca, a Repsol LNG deputy director.
Repsol, Shell and NIOC signed an initial deal in 2002 to
develop Phase 13 in the Persian LNG project.
"The project is important to us because it will give us a
presence in the Middle East, we are already established in the
Atlantic Basin, and in the Pacific with our project coming up in
Peru."
Bartuska said that despite the sensitive political relations
between Iran and the United States, Iran remained a viable
supply source for European countries.
"We will continue to keep the line with the US on Iran, but
we will do it only as long as it is viable for us," he said.
For eight-years, the administration of former President
George W. Bush pressured countries or companies that wanted to
secure energy deals in Tehran to keep out, as the United States
looked to isolate Iran over its controversial nuclear programme.
Washington's sanctions have barred U.S. firms from investing
in Iran's oil and gas sector since 1995 and include provisions
to deter companies from other countries.
But relations could start to thaw as the recently elected
President Barack Obama has offered direct talks with Tehran.
[]
"Hopefully we will see the political tensions between Iran
and the US improve because international oil companies are
struggling to get their access to natural resources, and would
love to look to Iran as an option", said Michael J. Corke,
vice-president of consultancy Purvin and Gertz.
(Editing by Guy Dresser)
