For years, Iran has debated whether to use its huge natural gas reserves, second in size only to Russia’s, to become a significant exporter. Doing so would entail the politically risky move of cutting gas subsidies for domestic consumers, one that should cut skyrocketing demand. But a series of internal and international factors – the biggest of which may be U.S. political pressure – seem to have finally convinced the Islamic Republic to push for more gas exports.

Over the past few weeks, top officials in the Iranian oil ministry have announced a series of plans aimed at attracting foreign investors. Iran has scrapped plans to build expensive natural gas liquefaction plants and will instead use the gas for exports via pipeline to Persian Gulf neighbors, Asia, and Europe.

Iran says it will build a new pipeline to Europe. It also decided to push forward with the long-delayed Iran-Pakistan-India pipeline, dubbed the Peace Pipeline, but temporarily without India. Tehran has also fast-tracked negotiations to supply Oman, Kuwait, and Turkey.

Of course Iran has a history of making empty promises, especially regarding its gas export potential. But this time around the promises are accompanied by concrete measures to gradually eliminate subsidies for motor fuel and natural gas by 2012. Those subsidies are one reason for the country’s galloping inflation rate, now hovering at about 30 percent annually.

Following Russia’s foray into Georgia, the global political map has made Iranian gas the best option for Europe to undercut Moscow’s energy stranglehold. Gas prices have increased significantly, and a coming change in the U.S. administration and overt diplomatic support from Russia and China have emboldened Tehran to use its vast gas reserves and strategic geopolitical proximity to important markets to its diplomatic and economic advantage.

To be sure, U.S. pressure on Tehran’s nuclear program has been so successful Iran has had little option but to progressively cut subsidies in its effort to become completely self-sufficient. Diplomatic isolation also managed to convince major Western companies to scrap plans to develop LNG there, freeing up gas for pipeline exports. Also, the U.S.-Russia stand-off and Moscow’s resurgence in its former sphere of influence are prompting investors and governments to rethink routes to connect to rich Caspian deposits via Iran. Although it is too early to say whether all of these preliminary deals and promises will be realized, Iran at the very least has signaled it is serious about becoming a major gas exporter.

“We prefer to expand our gas exports capacities by pipeline,” Akbar Torkan, deputy oil minister for planning affairs, said in comments published by the ministry's news agency. “We prefer to change unsigned [LNG] projects to gas exports plans.” To do so, the country is hoping to more than double its gas production to almost 10 trillion cubic feet per year by 2012, from about 4 tcf in 2007. Many analysts doubt that this is achievable, especially under tough financial sanctions from the U.S., Europe, and the U.N. But even if it falls short of the goal, Iran would arguably be able to meet at least some of its export commitments. In that list will likely be Pakistan and possibly India through the $7.6 billion Peace Pipeline that will carry almost 2 tcf annually, split equally between the two countries. During a visit to Pakistan, Foreign Minister Manouchehr Mottaki of Iran said Pakistan and Iran had decided to complete the first portion, allowing India to agree to the pipeline deal later.

Another likely export route would be Turkey, which is close to signing a deal that calls for importing more than 700 bcf annually from Iran.

Iran has already signed a 25-year contract with Switzerland to supply it nearly 200 bcf of gas per year. It also announced plans to build the Persian Pipeline via Turkey that would be independent of the Europe’s Nabucco flagship project to reduce dependence on Russian gas. The project would allow Europe to buy Iranian gas without investing Iran, thus avoiding sanctions. Austria, Germany, Italy, and Greece have all reportedly expressed interest in the project.

European companies have been pressuring Brussels to revise its policy of rejecting Iranian gas as part of diplomatic pressure on the country. Executives of Austrias’s OMV, Nabucco’s main shareholder, and Hungary’s MOL, a major shareholder, have publically said Iranian gas is the only way to guarantee enough supplies to build the pipeline.

Oman, Kuwait, U.A.E., and Bahrain are negotiating to each import about 365 bcf of gas annually from Iran. The Omani and Kuwaiti deals are the ones that seem closest to being finalized. The big obstacle, as always, is pricing. The Gulf countries are unwilling to pay international prices for the Iranian gas.

But the wrangles over gas appear to be temporary. In a world where gas consumption is booming, Iran will not be isolated.