Iran can benefit by setting up an energy trade network in the Caspian Sea region, which could export electricity rather than natural gas to regional customers, according to an analyst.

 “We can import natural gas from Caspian Sea to generate and export electric power,” Mahmoud Khaqani, a member of the Iranian Association of Energy Economics, was quoted as saying by Irna, Iran’s official news agency.

 “Gas export via pipeline is not economically justified. This is while Iran exports natural gas via pipelines to Turkey, Armenia and Azerbaijan, and plans call for raising gas production capacity to 1 billion cu m per day in two years and to 1.2 billion cu m per day by 2020,” he added.

Khaqani explained that the hub could serve as a platform for Caspian Sea littoral states to exchange technology and energy sources, transfer electricity, make joint investments and expand cooperation, the Irna report said.

Khaqani also highlighted the high demand for power in the Persian Gulf Arab countries and called for burning gas as feedstock in southern power plants to produce and export electricity.