Turkey confirms Iran gas deal
Turkey plans to carry out its $3.5 billion natural gas development plans in Iran, Turkish Energy Minister Taner Yildiz said on Wednesday.
"The issue would be discussed during Prime Minister Tayyip Recep Erdogan''s upcoming trip to Tehran," Reuters reported.
The Turkish and Iranian governments agreed in July 2007 that Turkish Petroleum Corporation (TPAO) would produce 20.4 billion cubic meters (bcm) of natural gas annually from three development phases of Iran''s South Pars gas field, but the deal has been delayed.
Iran has given TPAO a one-month deadline to finalize the deal to develop phases 22, 23 and 24 of the world's largest gas field in Iran.
Previously, the Managing director of Iran's Pars Oil and Gas Company (POGC) Ali Vakili had announced that if TPAO refrains from signing the contract during this period talks will begin with domestic and foreign companies.
During a visit by the Turkish delegation in November 2008, plans for the construction of an 1800-kilometer pipeline for transferring natural gas from Assaluyeh to the Turkish border was discussed. The objective was to increase the volume of Iran's gas exports to Turkey, and the transit of natural gas to Europe.
Currently Iran exports 50 million cubic meters of natural gas to Turkey daily and with the implementation of this plan another 23 million cubic meters would be added to that figure.