Friday, 30 July 2010

Iran signs $1.29 billion gas pipeline deal with Turkey

Iran and Turkey has signed a $1.29 billion deal to build a pipeline that will facilitate the transfer of Iran’s natural gas to Turkey. The deal, presided over by Iranian oil minister, Masoud Mirkazemi and Turkish energy and natural resources minister Taner Yildiz, was signed by National Iranian Gas Company’s managing director, Javad Owji, and Turkey's BOTAS Petroleum Pipeline Corporation Managing Director Fazil Senel.

According to the agreement, the Turkish side will secure 77 per cent of the required funds to complete the 660km pipeline. It is the 4th section of Iran’s 6th cross-country pipeline extending from southwest Assalouyeh to Bazargan border in the northwest.

In October last year, during Turkish prime minister Recep Tayyip Erdogan's visit to Tehran, the two countries signed an MoU on oil and gas co-operation, particularly Iran’s gas transfer to European markets through Turkey. At present Iran exports 25 million m³ of natural gas to Turkey per day, the figure is expected to increase to round 30 million m³ a day by the end of next year.

Source: Tehran Times

For more news and expert analysis about Iran, please see Iran Strategic Focus.

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