Turkey will go ahead with Iran gas agreement

Turkish Energy Minister Taner Yilldiz says his country plans to go ahead with its $3.5 billion natural gas development plans in Iran.

The plan includes development of phases 22, 23 and 24 in Iran's South Pars gas field.

Turkish Prime Minister Tayyip Recep Erdogan will discuss the issue during his upcoming trip to Tehran, Reuters reported.

The Turkish and Iranian governments agreed in July 2007 that Turkish Petroleum Corporation (TPAO) would produce 20.4 billion cubic meters (bcm) of natural gas annually from three development phases of Iran's South Pars gas field, but the deal has been delayed.

Iran has given 30 days deadline to TPAO to finalize the agreement on the development plan.

Previously, the Managing director of Iran's Pars Oil and Gas Company (POGC) Ali Vakili had warned that if TPAO refrains from signing the contract during this period, talks will begin with domestic and foreign firms.

During a visit by the Turkish delegation in November 2008, plans for the construction of an 1800-kilometer pipeline for transferring natural gas from Assaluyeh to the Turkish border was discussed.

The objective was to increase the volume of Iran's gas exports to Turkey, and the transit of natural gas to Europe.

Iran currently exports 50 million cubic meters of natural gas to Turkey daily. More than 23 million cubic meters of natural gas would be added to that figure by the implementation of the development plan.