Turkey and Iran: Natural Gas Deal

According to The International Herald Tribune, Turkey and Iran will probably sign a natural gas deal during Iranian President Mahmoud Ahmadinejad’s expected visit to the Turkish capital, Ankara. As the report notes:

“…Ahmad Noorani, in charge of economic affairs at the Iranian Embassy in Ankara, said the two countries agreed in May on the construction of a new gas pipeline to ensure a steady flow to Turkey, which suffers frequent cuts in gas from Iran during wintertime.

Turkish officials and Noorani say they are expecting a visit by Ahmadinejad but have not announced the date.

“We believe the agreement will be signed during the president’s visit which is expected soon,” Noorani said.

…Turkey has sought ways to increase cooperation with Iran, especially in the field of energy.

Last year, the two countries signed a memorandum of understanding to build a gas pipeline to transport up to 40 billion cubic meters (1,412 billion cubic feet) of gas to Europe per year through a US-backed pipeline that would stretch from Turkey to Austria.

But U.S. officials have since expressed strong opposition to the possibility of bringing Iranian gas to Europe via NATO-ally Turkey. The final agreement between Turkey and Iran has yet to be signed.

The new agreement would be about another pipeline that would bring gas to Turkey for domestic consumption. Iran would pay for its construction, which is expected to cost around US$930 million (€600 million), Noorani said.”

This entry was posted on Thursday, August 7th, 2008 at 11:34 am and is filed under Iran, Turkey.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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