Reuters reported that Iran is holding talks on several alternative routes to transport its natural gas to Europe.
A senior energy official said that Iran sits atop the world’s second largest gas reserves after Russia but it has been slow to develop exports, partly because of US sanctions that hinder access to technology.
Mr Reza Kasaiezadeh head of National Iranian Gas Export Company said that possible routes to Europe included via Azerbaijan as well as through Iraq and Syria or via Saudi Arabia to Italy.
Mr Kasaiezadeh said that talks are currently under way on each of the alternatives. Transit price would be crucial in determining the choice. In some instances the income resulting from the transit exceeds the gas sale price for the producing countries. He said that Switzerland had started talks with Ankara about the transit of Iranian gas through Turkey, giving no details. Swiss energy group EGL signed a 25 year gas purchase deal worth over USD 13 billion with Iran in 2008.
Iran is Turkey’s second-biggest supplier of natural gas after Russia. Turkey has said that Iranian fuel can help the planned Nabucco gas pipeline to supply Europe with gas and lessen the continent’s dependence on Russian supplies.
Another official confirmed that Iran had given state oil company Turkish Petroleum 1 month deadline to finalize USD 3.5 billion deals to develop part of the world’s largest gas field in Iran.
Mr Ali Vakili head of the Pars Oil and Gas Company said that “At the request of the Turkish Energy Ministry, the National Iranian Oil Company has renewed the 1 month deadline for Turkey to make its final decision on 3 South Pars gas field phases.”
Mr Vakili said that if Turkey did not sign the contract Iran would negotiate with other domestic and foreign companies. The Turkish and Iranian governments agreed in 2007 that Turkish Petroleum would produce an annual 20.4 billion cubic meters of natural gas from 3 development phases of Iran’s South Pars field. The deal has been delayed amid objections from Turkey’s ally the US which opposes new energy deals in Iran as part of efforts to isolate Tehran over its nuclear program.
