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LIVE

Friday, 09 January, 2009, 12:50 GMT | more >>

Iran and Turkey strike pipe deal

By Upstream staff

Iran and Turkey have agreed on a joint scheme to export Iranian natural gas to Europe via Turkish pipelines, Tehran's Oil Minister, Seyed Kazem Vaziri-Hamaneh, said today.

Iran has been considering Ukraine and Turkey as possible routes to Europe. In July last year it announced a preliminary agreement with Ukraine to use its pipelines.

"We agreed to increase the capacity of Iran's pipeline that connects to Turkey's pipeline and jointly export gas to Europe," Vaziri-Hamaneh was quoted by the oil ministry website as saying.

Apart from using the 5 billion cubic metres per day of vacant capacity in Turkey's pipelines, Hamaneh referred to the proposed Nabucco pipeline as a second means to pump gas through Turkey.

"The Nabucco pipeline has 90 million cubic metres (per day) of capacity and 30% to 50% of its capacity will be allocated to Iran (for its gas exports)," Hamaneh said.

He said the two neighbouring countries could not agree on building a new pipeline to take Iran's gas to Europe's consumers.

The Nabucco pipeline project, backed by the European Union partly as a means to diversify away from reliance on Russia by gaining access to central Asian gas, aims to extend pipelines from Turkey to Hungary and Austria through the eastern Balkans.