Posted by: russiaoilandgas | July 17, 2007

Iran and Turkmenistan to Pump Gas to Europe

Nabucco Pipeline Turkey Iran EU Europe GasIran and Turkmenistan will pump 30 billion cubic metres of gas a year to Europe via Turkey, leaving no need for alternative supplies to the Nabucco pipeline project, a senior Turkish energy official said on Saturday.

On top of this, Turkey and Iran have also agreed that the Turkish Petroleum Corporation (TPAO) will produce 20 bcm natural gas in the three phases of Iran’s South Pars gas field, the official, requesting anonymity, said.

Iran and Turkey have signed a preliminary agreement to pump Iranian gas to Europe via Turkey, Iran said earlier on Saturday, a move that will open a new export market for Iran’s massive reserves.

“The agreement signed between Turkey and Iran paves the way for the Nabucco project and we no longer need any other supplies to meet the Nabucco gas requirement,” said the official.

Turkey had sought Russian gas for the €4.6 billion or $6.3 billion Nabucco project that will cross Turkey. It is backed by the European Union partly as a means to diversify 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 31 billion cubic metres a year of gas from producers in central Asia to big consuming countries in Europe.

Details of the preliminary agreement with Iran will be announced in a month’s time, the official said, adding that the timing of when the gas would start flowing had yet to be settled. “But it is agreed that Iran will pump 30 bcm gas to Turkey per year which might include Turkmen gas,” he said.

The memorandum of understanding includes an agreement to pump gas from Turkmenistan to Turkey via Iran, and Tehran’s approval for Ankara to develop the three phases of South Pars.

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.

Turkmenistan already exports gas to Iran and sent 4.1 billion cubic metres to the Islamic Republic in the first half of 2007.

The central Asian country exports most of its gas via a Soviet-era pipeline to Russian firm Gazprom.

For the orinignal story click here  ( http://www.oilandgaseurasia.com/news/p/0/news/798 )

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