Iran to Supply Domestically-Made Gas Turbines to Russia

Iran is currently capable of producing "85% of the equipment needed in the gas business" on its own, Reza Noushadi told the Iranian oil ministry's Shana news agency on Sunday.

Iran was able to sign the contract with Moscow because to this ability, he continued, but did not reveal exactly when the transaction was made or when the turbines will arrive in Russia.

Russian officials have so far not commented on Noushadi’s statements. The development comes as the sanctions policies of the US and its allies have hit industry ties between Russia and its Western equipment suppliers, RT reports.

Earlier this year, the Russian energy giant Gazprom had to gradually reduce gas deliveries to Europe via the Nord Stream 1 pipeline due to technical problems related to servicing turbines.

Issues arose due to sanctions on Russia that have prevented the maintenance of some equipment and the delivery of spare parts, the company said at that time. One such turbine, initially supplied to Russia by the German company Siemens, became stuck in Canada, where it had been sent for maintenance, due to Ottawa’s sanctions policy. Berlin eventually managed to get it back but it was never delivered from Germany to Russia.

Due to leaks on both pipelines caused by a series of undersea explosions that many countries suspect were the result of sabotage, Nord Stream 1 and Nord Stream 2, which has not yet been inaugurated because of Berlin's resistance, are now not in operation.

Meanwhile, Russia is expanding its economic cooperation with Iran. In late September, the Iranian oil ministry announced plans to purchase nine million cubic meters of gas per day from Russia via Azerbaijan for its needs, as well as an additional six million cubic meters of gas per day, as part of a swap agreement that would see the gas exported onward to the other nations from Iranian liquefied natural gas (LNG) terminals.

The announcement was made as Tehran revealed details of a deal struck in July between the National Iranian Oil Company (NIOC) and Gazprom. The agreement involves cooperation in the field of oil and gas infrastructure development, including the construction of LNG terminals and gas pipelines, Iranian officials said. The agreement is worth $40 billion, according to local media.