Tehran intends to expand gas cooperation with Baku, ready to organize swaps with Pakistan, Iraq

BAKU. Sept 23 (Interfax) - Iran is interested in organizing gas and energy swaps with Azerbaijan and Pakistan, Iranian Ambassador to Baku Mojtaba Demirchilou said.

"The energy sector plays a key role in the development of relations between Iran and Azerbaijan. Our countries have developed very good relations in this sphere," Demirchilou said in an interview with the Trend agency.

Projects for bilateral and multilateral cooperation in energy have already been identified, and the work on coordinating them should be completed in the near future, he said.

"Among the projects are the implementation of an agreement on the joint development of oil fields in the Caspian Sea, the synchronization of the power grids of Iran, Azerbaijan and Russia, the transportation of Russian gas to Iran via Azerbaijan, gas swaps between Azerbaijan, Iran and Iraq, and gas and electricity swaps between Azerbaijan, Iran and Pakistan," he said.

There are also joint projects on the Aras river. "The two countries have built hydro nodes for joint operation, and in the near future, hydroelectric power plants will be commissioned at these hydro nodes," he said.

Regarding the synchronization of the power grids of Iran, Azerbaijan, and Russia, Demirchilou said that the details of the initiative are currently being worked out. There is an agreement at the level of the three countries' leaderships on exchanging electricity, he said.

"The Iranian company Monenco has completed research work in this area and prepared reports, which have been presented to the parties. Based on these, the possibility of synchronizing the power grids has emerged. This will increase the reliability of the energy systems and create opportunities for exporting electricity to third countries," he said.

Trade turnover between Iran and Azerbaijan increased 34% in 2024 compared to the level of the previous year, to $647 million, he said. "However, this figure remains insufficient. Iran is working on strengthening economic ties by removing financial and banking barriers, simplifying transit and cargo transportation, and expanding interaction between business communities," he said.