EMIRATES: Turkey to invest in Iran gas sector

Minister of Petroleum Seyyed Kazem Vaziri-Hamaneh has announced Turkey will invest in Phase 3 of South Pars gas field in the energy-rich Bushehr.

In an interview with Fars news agency, Vaziri-Hamaneh added that in his recent visit to Turkey, the two countries discussed the details of Turkey’s participation in Phase 3, but a precise estimate of the value of investment is yet to be announced.

Tehran and Ankara have signed an agreement that will allow the transit of Iran’s gas to Europe via Turkey.

Based on the agreement, Iran will be able to export gas to Europe, while, in return, Ankara will be authorized to import gas from Turkmenistan via Iran.

The minister said that Iran has introduced its negotiating team and is now waiting for Turkey to do the same.

Turning to the 25-year gas deal signed between Crescent Petroleum (CPC) and the National Iranian Gas Export Company (NIGEC) in 2001, Vaziri-Hamaneh said, “There have been talks to find potential consumers to substitute the United Arab Emirates.”

According to the deal, the CPC will buy 15 MCM/d (525 MCF/d) of Iranian gas from the offshore Salman field. The gas will then be pumped to Sirri Island and from there CPC will supply 350 MCF/d to Dubai and the rest to Sharjah’s offshore Mubarak field.

The pipe-laying project has been completed. However, a dispute with the UAE over the price is impeding the export.

“So far, certain foreign enterprises have expressed willingness to purchase Iran’s gas at daily prices,” he noted.

Elsewhere in his remarks, the minister stated that the $2.5 billion budget allocated for gasoline imports has been run out.

The gasoline has been purchased and will be gradually supplied to the market,” he explained. Referring to the gasoline rationing scheme, Vaziri-Hamaneh said, “Fuel consumption in the current Iranian year (started March 21) has decreased by 21 percent compared to that of the corresponding period in the past year.

Via: Teheran Times