Iran signed a $16 Billion gas deal with Malaysia to exploit its vast natural gas reserves, which are lying unused because of lack of investments.

The Oil Minster of Iran, Gholam-Hossein Nozari, said that SKS ventures (privately held company) of Malaysia would invest $6 Billion during 2008-2013 for developing the upstream part of gas fields. Iran is also ready to sign another deal on LNG production with an estimated cost of $9-10 Billion, reported Press TV  .

The gas would be transferred via pipelines across Turkey and after that, either Albania or Greece. It was also the second largest deal that Iran signed with overseas companies in the field of oil and gas in December 2007. After Russia, Iran boosts of the world’s second largest gas reserves but due to pressure from western allies, it remains a small player in world export market. The domestic demand for gas is also rising in the country and to meet the domestic needs, Iran needs huge investment in this field.

Also, Malaysia’s growing industries and automobile sector has created a strong demand for energy. Consequently, the huge demand of fuel in the country and domestic energy supply constraints has forced the country to look for new energy sources. And LNG deal with Iran is a step to fulfill the domestic demand.

However, the US led campaign to seize investment in Iran by foreign companies is in its full swing. The US is pressurizing its western allies to halt investment in Iran on account that Iran is creating nuclear weapons in guise of civilian nuclear programs. Nevertheless, Iran is moving ahead by signing deals with Asian players.

According to a Research Analyst at RNCOS  , ”Iran’s oil and gas industry is one of the richest industries in the world. The US and its European counterparts are blaming Iran for diverting investments to its nuclear programs. As a result, Iran is not comfortable in the global energy market. On the other side, Iran is repeatedly saying that its nuclear project is for peaceful purposes and there are no wrong intentions behind it. The gas deal of Iran with Malaysia encourages other countries to sign more such deals seeing the rising demand of fuel and energy worldwide.”