Iran and Azerbaijan Sign Memorandum of Understanding to Deepen Energy Cooperation

According to the Iranian MNA News Agency, Tehran reported on November 20th, Iran and Azerbaijan signed a memorandum of understanding in Baku, Azerbaijan, on November 19 to deepen cooperation between the two countries in the energy field.

According to the official website of the Iranian Oil Ministry, SHANA, the memorandum of understanding was signed during the visit of Iranian President Mahmoud Ahmadinejad to Baku.

Azerbaijani President Aliyev said that this memorandum of understanding aims to further deepen cooperation between the two countries in the energy field. The projects involved include supplying natural gas to Iran from Azerbaijan, exchange of electricity, and the development of a railway link connecting the two countries.

According to Reuters, Azerbaijan supplies Iran with 400 million cubic meters of natural gas each year. In exchange, Iran will supply 350 million cubic meters of natural gas each year to the geographically remote Nakhchivan region of Azerbaijan.

Iran intends to complete the construction of a natural gas compression station by the end of this year. This gas compression station will be able to increase the volume of natural gas from Azerbaijan to 1.5 billion cubic meters.