Iran is pitching its massive gas sector for trade with Asia where it sees a better market for exports than Europe.
Deputy Oil Minister for Trade and International Affairs Amir Hossein Zamani-Nia told Kyodo news agency in an interview on Sunday that gas prices are more attractive in East Asia than in Europe and Iran hopes to eventually export natural gas to East Asia, including Japan.
He also held out the prospect of Iran and Japan forming a long-term partnership for the supply of Iranian LNG to the Asian country. "Japan has a great potential of becoming a major partner for Iran in developing its gas industry," he said.
In early August, Japan's State Minister of Economy, Trade and Industry Daishiro Yamagiwa visited Tehran accompanied by executives from major trading houses such as Mitsubishi Corp., Mitsui and Co. and Itochu, as well as plant-engineering giant JGC and major banks.
Tehran supplied 10 percent of Japan's oil imports before sanctions cut them to five percent. Japan wants to raise the purchases to the previous level.
"Given that Iran's oil and natural gas reserves are one of the world's biggest, there is a possibility that Iran will play a part if Japan seeks to diversify its supply sources," Kyodo quoted a Japanese gas and oil industry source as saying on Sunday.
Zamani-Nia said Japanese companies are interested in reengaging in Iran's energy sector, particularly in the gas industry, adding he believes that Japan's current policy seems to be less geared towards crude oil.