Uncategorized

Iran and Turkey take a giant step in Key European gas Deal

Tehran, Iran | July 16, 2007 by D-8 Secretariat

An important move that will open a new export market for Iran's massive oil reserves has been taken with the signing of Iran-Turkey preliminary agreement to pump Iranian gas to Europe via Turkey.

Oil Minister Kazem Vaziri-Hamaneh said yesterday the memorandum of understanding (MoU) included an agreement to pump gas from Turkmenistan to Turkey via Iran and Tehran's approval for Ankara to develop three phases of Iran's South Pars gas field.

Iran, with the world's biggest gas reserves after Russia, has been considering Ukraine and Turkey as possible routes to get its gas to Europe. In August 2006, it announced plans for a joint scheme with Ankara to use its pipelines.

According to Vaziri-Hamaneh, this MoU will allow the transit of Iran's gas to Europe via Turkey and will let Turkmenistan's gas be exported to Europe through Iran's soil.

Turkmenistan already exports gas to Iran and sent 4.1 billion cubic metres to the Islamic republic in the first half of 2007. Iran The Central Asian country exports most of its gas via a Soviet-era pipeline to Russian firm Gazprom.

The proposed $6.3bn Nabucco pipeline project that will cross Turkey is backed by the EU partly as a means to diversify away from reliance on Russia by gaining access to Central Asian gas.

The pipeline, running across Turkey to Hungary and Austria through the eastern Balkans, will eventually be able to carry 31bn cubic metres a year of gas from producers in Central Asia to big consuming countries in Europe.

Vaziri-Hamaneh said experts from the two neighbours will work on the project's details in one month to finalise the deal.

National Iranian Oil Company international affairs director Hojatollah Ghanimifard said further talks would discuss issues such as the structure and shareholding of any firms to implement the plans.

The minister said details on developing the phases 22, 23 and 24 of Iran's south Pars gas field by Turkey would be finalised in four to six months.

"Details will be studied next month when Turkey's energy minister visits and in four to six month the necessary agreements will be signed," Vaziri-Hamaneh said, adding that the phases would be developed under so-called "buy back" terms.

In the meantime, the gas supply manager of National Iranian Gas Co. (NIGC) said 22 billion dollars would be invested in the gas industry by the end of the Fourth Five-Year Socioeconomic Development Plan (2005-2010).

In addition to that, Iran's Petroleum Ministry on Saturday released the list of 21 companies to cede to the private sector in line with the Article 44 of the Constitution.

The list was approved by the ministry and the terms and conditions of delivery are set by the Iranian Privatization Organization (IPO).

Out of the companies, five belong to National Iranian Oil Company (NIOC), nine to National Petrochemical Company (NPC), five are affiliates of National Iranian Gas Company (NIGC), and two of National Iranian Oil Refining and Distribution Company (NIORDC).

The D-8 organisation through its Secretary General expressed content about the privatisation and wish that cooperation in investment and business could be more expanded. The organisation is also keen to discuss the development of Iran economic cooperation in oil and gas very shortly.

Read Also

Rate this article:
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading ... Loading ...
Print This Post

Share your thoughts on this story. Please increase the credibility of your post by including your name and city, and by demonstrating respect for others' opinions. Comments will not appear immediately; all comments are moderated and will be posted in order of submission.