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Quanta Report
Middle East

Iran Targets 110 Billion Cubic Meter Gas Pipeline with Russia, Announces Swap Scheme

Iran's ambassador said the country plans a 110‑billion cubic‑meter natural‑gas pipeline with Russia, initially delivering 55 billion cubic meters, and will use a swap arrangement through Azerbaijan to bridge the gap.

By Quanta ReportSource: tass.com2 min read

In brief

Iran has announced the design of a long‑term natural‑gas pipeline from Russia with a projected capacity of 110 billion cubic meters, starting at 55 billion cubic meters over two to three years. Ambassador Kazem Jalali said the project will occur in two phases, and a swap scheme with Azerbaijan has been proposed as a quick interim solution. The move signals deepening energy cooperation between Tehran and Moscow amid complex regional logistics.

Iran plans to construct a new natural‑gas pipeline from Russia that could transport up to 110 billion cubic meters of gas per year, according to the country’s ambassador to Moscow, Kazem Jalali. The 2024 announcement was made on Iranian state television and covered by TASS on July 17, 2014. The pipeline would allow Russia to supply Iranian domestic needs while potentially serving transit routes to Europe.

In announcing the project, Jalali noted that the plan would unfold in two distinct stages. An initial phase would bring the pipeline online within two to three years, with a capacity of 55 billion cubic meters, before later reaching the full 110 billion cubic meters. The ambassador emphasized that the two‑stage approach would help align construction schedules with economic and political conditions in both countries.

Ambassador Jalali explained that the long‑term goal is to build a dedicated pipeline specifically for Russian gas supplies to Iran. “The long‑term goal is to construct a separate pipeline for Russian gas supplies to Iran, with a final capacity of 110 bln cubic meters, and an initial phase capacity of 55 bln cubic meters within two to three years,” Jalali said in the interview.

"The long‑term goal is to construct a separate pipeline for Russian gas supplies to Iran, with a final capacity of 110 bln cubic meters, and an initial phase capacity of 55 bln cubic meters within two to three years,"

During the discussion, Jalali mentioned that natural‑gas cooperation between the two nations would proceed in two stages. Initially, the project would rely on restoring existing infrastructure and coordinate trilateral cooperation with Azerbaijan. However, this approach would take time, and therefore a “swap scheme” was being considered as the fastest option.

A swap scheme is a contractual arrangement that exchanges an equivalent volume of gas across parallel pipelines, enabling delivery to a country without physically building a new line immediately. In this case, Russia would deliver gas to northern Azerbaijan, and an equivalent volume would be transferred to Iran from the south of Azerbaijan. The swap would use existing pipelines in Azerbaijan to bridge the gap while the long‑term pipeline is constructed.

Ambassador Jalali stressed that gas exports from Russia to Azerbaijan and Iran needed to align with global market dynamics. “We want to cooperate in a manner that ensures the flexibility and stability of the gas flows,” he stated. This flexibility is critical as Iran must meet domestic energy demands and potentially export to downstream markets.

The project has broader implications for the regional energy market. By creating a gas corridor connecting Russia to Iran, the pipeline would also position both countries as key transit points for energy to Europe. It would diversify supply routes and mitigate reliance on any single source.

Domestically, Iran’s natural‑gas revenues are a major component of its energy sector. Establishing a dedicated pipeline would reduce import costs and stimulate economic activity in the northern regions of the country.

While the announcement was optimistic, no definitive construction timeline or cost estimate was provided. The plan also left open several technical and regulatory questions that will be addressed in later stages of the project. Nonetheless, the agreement signals a renewed commitment between Tehran and Moscow to solidify their energy partnership in a complex geopolitical environment.

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