Turkey, Iran can boost energy co-op (exclusive)

Türkiye Materials 11 February 2016 20:06 (UTC +04:00)

Baku, Azerbaijan, Feb. 11

By Rufiz Hafizoglu - Trend:

Currently, Turkey imports oil and gas from Iran, but this doesn't exclude the possibility of expanding cooperation in the energy sector, said Turkey's Ambassador to Azerbaijan Ismail Alper Coskun in an exclusive interview with Trend Feb. 11.

He said given the growing demand in natural gas in Turkey and that the country has a huge market, Ankara may further request Tehran to increase gas supplies.

Speaking about the export of Iranian gas to Europe, the Turkish diplomat said Iran is entitled to choose a country through the territory of which it would export its energy resources.

He added that the use of one route entails risks for both the exporter and the importer.

"Earlier, Iran announced its intention to join the Trans-Anatolian Natural Gas Pipeline (TANAP) project," the ambassador said. "This was highly appreciated by Azerbaijan and Turkey."

He also said that the recent lifting of sanctions on Iran meets Turkey's interests.

"Turkey and Iran intend to increase trade turnover up to $30 billion," the ambassador said. "Moreover, Turkish investors can invest in various sectors of Iran's economy."

Turkey imports 6.6 billion cubic meters (mcm) of gas per year from Azerbaijan on the basis of a 'take or pay' contract.

Ankara also has agreements with Algeria and Nigeria for the supply of 4.4 billion cubic meters and 1.2 billion cubic meters of liquefied gas per year, respectively.

Iran and Italian company Saipem signed a contract worth $3.8 billion regarding the construction of a 1,800-kilometer gas pipeline in late January.

Some 100 mcm of gas will be daily supplied via this pipeline from Iranian South Pars deposit to Iran's border with Turkey.

Moreover, Iran is currently building an LNG plant, which will annually produce 10.4 million tons of LNG.

The plant is expected to be commissioned in 2019.