The Islamic Republic of Iran and Egypt have taken steps to renew bilateral energy relations, reports say.
Iranian media have quoted the deputy head of the Association of Petrochemical Industry Corporation (APIC) as saying on Tuesday that following Cairo’s recent “green light” to Iran to transfer crude oil to European countries through Egypt’s SUMED pipeline, Iran has been in talks with the North African country to sell it liquefied natural gas (LNG).
APIC deputy Parviz Sahafzadeh, speaking about the latest D-8 meeting on the industry hosted by Egypt between May 9 and 11, told reporters that an Iranian delegation attended the talks and that Egypt’s consent on SUMED has laid the groundwork for Iran’s access to Europe via the Mediterranean Sea.
Developing-8 (D-8) is an organization promoting development cooperation among member states including Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey and Bangladesh.
The official highlighted the significance of Iran’s LNG exports to Egypt, adding elsewhere that Iranian companies have also received a list of Egypt's “much-needed petrochemical items.”
Last November, Egyptian Petroleum Minister Tarek El Molla said his country looked to Iran’s ramp-up of oil production which could boost the Arab nation’s proceeds from transit of crude through SUMED.
The January lifting of sanctions on the Islamic Republic in return for some curbs on its nuclear program has apparently removed the biggest hurdle to the renewed operation of the Egyptian pipeline.
SUMED provides an alternative transit route for oil cargoes from the Persian Gulf region to the Mediterranean that are too large to be shipped through the Suez Canal.
Iran has recently increased oil production in a bid to regain its global market share of pre-sanctions levels.
The latest news comes amid predictions that Iran’s oil output will climb to some five million barrels per day within three years.