Shanghai Energy Company: what will the SCO countries get from creating an energy hub

According to the proposal of the Iranian side, there can be an exchange and trade of fossil fuels, electricity and energy from renewable sources.

BAKU, Oct 28 — Sputnik. During the meeting of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO), Iran launched an initiative to create a regional energy hub "Shanghai Energy".

According to Iranian Vice President Mohammad Mohber, the goal of creating an energy hub within the SCO is to trade and exchange energy, as well as ensure the energy security of the organization's member countries.

According to the proposal of the Iranian side, there can be an exchange and trade of fossil fuels, electricity and energy from renewable sources.

In addition, the Vice President of Iran also proposed to create a fund of interested investor countries for joint financing of petrochemical projects, and stressed the readiness of his country to provide engineering and technical services and produce equipment for the oil, gas and petrochemical sectors.

SCO unites energy exporters and importers

It should be noted that the SCO unites the world's largest exporters (Russia, Iran, Kazakhstan) and importers (China, India) of energy resources. In addition, a number of major oil and gas countries in the Middle East, such as Saudi Arabia, the United Arab Emirates, Algeria and Qatar, have expressed interest in participating in this organization in one form or another.

The issue of deepening energy cooperation in the format of a regional association is not new for the SCO. Back in 2005, Russian President Vladimir Putin proposed the idea of creating a "SCO Energy Club" as a mechanism that unites producers, consumers and transiters of energy resources.

Then, in 2013, representatives of the organization's member countries signed a memorandum on the creation of an energy club, the main purpose of which was to forecast demand and consumption, the ability of producing countries to meet this demand, and discuss new technologies and innovations.

However, Iran's initiative is more commercial in nature – within the framework of the SCO energy hub, it is planned to primarily carry out the purchase and sale of energy resources, as well as attract investment in oil and gas projects.

source: Az.sputniknews.ru