Turkey returns to energy chess game

Turkey made an important move in the energy chess game when it signed a Memorandum of Understanding (MoU) with Iran over the weekend that will make both Russia and the US rethink their positions on gas policies in particular and on energy policy in general, said Cenk Pala, director general of strategic relations at state-owned Turkish Pipeline Company (BOTAS), affiliated with the Ministry of Energy and Natural Resources.

Speaking to Today’s Zaman, Pala stated that he was not fully familiar with the contents of the MoU at this stage. He said, however, that this MoU, if executed well enough, will make Russia to rethink its energy policy of making Europe fully dependent on its gas, while it will make the US accelerate the transportation of Iraqi gas via Turkey.
Thus the Turkish-Iranian MoU, which envisages both Turkmen and Iranian gas to be transported via Turkey, would also be welcomed in Europe, which has to renew its gas contracts with Russia before the end of 2010.

“Europe will now be relieved by the news that by 2010 it will have an alternative gas resource coming from the east, i.e., from Iran and Turkmenistan via Turkey,” Pala said.

In Ankara on July 14, Iran’s visiting Minister of Petroleum Seyyed Kazem Vaziri-Hamaneh and Turkish Energy and Natural Resources Minister Hilmi Guler signed the MoU on Iranian gas export to Europe via Turkey and Turkmen gas export to Europe via Iran. Both countries also agreed to develop part of the giant South Pars gas field in the Persian Gulf on a buyback basis, Tehran state-run radio reported Saturday.

“It was agreed that Turkey would develop three phases — 22, 23 and 24 — of South Pars and offer the gas produced to Iran on a buyback [basis],” state-run radio quoted Iranian Oil Minister Vaziri-Hamaneh as saying.Vaziri-Hamaneh said the two sides would sign an official contract within the next four to six months on development of the gas field, following the completion of feasibility studies by Turkey. The MoU has also given Iran a chance to make a move in the chess game by convincing Ankara to sell Iranian gas to Europe. Ankara, under pressure from Washington, has long been resisting Iranian demands to sell its gas to Europe via Turkey.

This weekend’s surprise deal reached between Turkey and Iran came soon after several agreements signed by Russian President Vladimir Putin with Central Asian energy-rich countries and lastly with Italian ENI, jeopardizing the Turkish goal of becoming an energy hub by bypassing the strategic and busy Bosporus and Dardanelles Straits. Both Turkish and European energy experts stated at the time that Putin’s move should be seen as a serious blow to both Turkish and European aspirations to reduce reliance on Russian gas.

Zaman