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Iran and Turkey firm up pipe plans

Iran and Turkey plan to set up a joint company to build a pipeline to transfer natural gas from the Islamic Republic to its northwestern neighbour, Oil Minister Gholamhossein Nozari said in comments published today.

Nozari held talks with Turkish Energy Minister Hilmi Guler on Tuesday on his way to a meeting of Opec in Algeria today, Iran's official IRNA news agency reported.

It was a follow-up meeting to last month's signing of a memorandum of understanding between the two countries for the development of two phases of Iran's South Pars field in the Gulf and on transferring natural gas to Europe, IRNA said according to Reuters.

Discussions on expanding energy co-operation between Iran and Turkey have drawn criticism from the US which is seeking to isolate Tehran over its disputed nuclear plans.

The MoU signed in mid-November also covered transferring gas to Turkey from Iran and delivering 35 billion cubic metres of gas a year to Europe, Iranian officials said at the time.

The two sides initially signed a deal last year on joint gas production and export of Iranian gas via Turkey to Europe.

"It was decided to take (practical) steps forward along the implementation of this MOU," IRNA quoted Nozari as saying after his talks in Ankara.

"Iran and Turkey are planning to set up a joint company for the building of a pipeline to transfer gas ... to the Turkish border, and another joint company on the construction of a gas pipeline from Iran's border to the Greek border," Nozari said.

An Iranian Oil Ministry delegation will travel to Turkey later this week for more talks on the MoU, IRNA said.

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