“Iran’s large gas reserves in South Pars could provide additional commercial rationale to the EU-sponsored Southern Gas Corridor,” Giuli said.

Iran and the P5+1, which includes the US, France, the UK, Russia, China plus Germany, should conclude a final nuclear accord by June 30. The parties reached a framework agreement in early April. Iran, after conclusion of the agreement, expects a full removal of West’s sanctions.

However, as the expert said, Iran’s gas could be delivered via the Southern Gas Corridor on condition of significant investments in the north-south gas grid and expansion of the TANAP route.

But Giuli said several factors might hinder Iranian gas going through the Southern Gas Corridor, as for example, Russia’s ability to price out newcomers once the Turkish Stream comes on stream at its planned size, or the uncertain outlook for European gas demand.

The Southern Gas Corridor is considered to be a priority energy project for the EU. It envisages transportation of gas from the Caspian region through Georgia and Turkey to Europe.

At the initial stage, the gas to be produced as part of the Stage 2 development of Azerbaijan’s Shah Deniz gas and condensate field is considered the main source for the Southern Gas Corridor.

At a later stage, other sources can be connected to the project.

The gas to be produced as part of the Stage 2 of the field`s development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).

Azerbaijan’s gas will go to Europe sometime in early 2020 after the completion of the construction of the Trans Adriatic Pipeline (TAP).

Aside from that, earlier the European Commission’s Vice President Maros Sefcovic said the EU also expects to start receiving natural gas from Turkmenistan via the Southern Gas Corridor in 2019.

He made this statement after talks with the leadership of Turkmenistan in Ashgabat.

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