A flexible pipeline dream: Iran’s LNG goals

Abstract

It is no secret that Iran has expressed interest in becoming a leading producer of LNG. Although currently not a producer at all, the country has made it repeatedly that transporting its gas reserves by sea is the best logical short-term goal vis-a-vis the many geopolitical, technical, and financial obstacles set against its international pipeline projects, which will take the best part of a decade to come to fruition, if at all. However, this by no means makes LNG a plan-B in the minds of policy-makers. LNG carries with it a unique set of advantages which make it a much-sought asset in oil diplomacy: Simply put, unlike with pipeline transit, suppliers can send their shipments wherever the price is right, making LNG supplies a “flexible pipeline” which will no doubt have an impact at the bargaining table. Indeed, it is not only investment and infrastructure which Iran needs to reclaim its position on the global market, but a comprehensive oil diplomacy to consolidate any headway made in the post-sanctions era.