Turkey refuses to back down on Iran energy deal

The Turkish government has reiterated its determination to press ahead with massive investment in the Iranian energy sector, despite U.S. opposition.

On August 12 Turkish Energy Minister Hilmi Guler announced that Turkey was determined to implement the terms of a memorandum of understanding signed with Iran on July 13 (CNNTurk, August 12).

When the agreement was originally announced, Guler described it as an important step towards realizing Turkey
However, Turkey has been undeterred. On August 12, Guler announced that a Turkish delegation had flown to Tehran to begin detailed discussions with their Iranian counterparts in order to finalize details of the price, volume, and quality of the gas (CNNTurk, August 12). The negotiations are expected to last four-to-six months and TPAO is aiming to begin the construction of facilities in the South Pars field in 2008.

Turkey already imports Iranian natural gas for its own use under an agreement signed in 1996. It also imports natural gas from Russia. Turkish governments have repeatedly expressed their desire to diversity their sources in order to avoid becoming dependent on a single supplier (Milliyet, July 19).

Eurasia Daily Monitor