Turkey debates "reliability" of Iran gas

18/01/2008

The suspension of natural gas supplies from Iran to Turkey earlier this month has prompted Turkish officials to explore relationships with other countries that supply gas and oil.

By Ayhan Simsek for Southeast European Times -- 18/01/08

Turkish Prime Minister Recep Tayyip Erdogan asked Iran to resume gas exports to Turkey last week. [Getty Images]

Earlier this month, Iran suspended natural gas supplies to Turkey, citing an increase in domestic demand due to cold weather, as well as a decline in natural gas flows from Turkmenistan. The move, in turn, caused Turkey to suspend transportation of gas supplies to Greece. Both Turkey and Greece have once again turned to Russia to avert a major energy crisis during severe winter conditions. Iran could not specify on Thursday (January 17th) when it will resume gas deliveries to Turkey, and blamed Turkmen officials for acting "immorally". Iran usually exports up to 30m cubic metres of natural gas to Turkey daily, while it imports roughly 23m daily from Turkmenistan.

"It is true that Iran has the world's second largest natural gas reserves, but presently it lacks the capabilities for production, and Iran is itself dependent on gas from Turkmenistan," Turkish energy expert Faruk Demir said. "So for the time being, it is not a real alternative to Russian gas."

Turkmenistan said "technical problems" have caused its suspension of gas exports to Iran. However, Turkmenistan and Russia recently signed an energy deal, under which Moscow now pays 9 euros per 1,000 cubic metres of Turkmen gas, and Turkmenistan reportedly was seeking a similar increase from Iran.

To reduce its dependence on Russian gas, the Turkish government signed an agreement with Iran last year -- a deal criticised by the United States. It outlined a 2 billion euros investment by Turkey into Iran's South Pars gas field, as well as joint ventures for a pipeline system that will extend to eastern Turkey.

Washington expressed uneasiness with the deal because of a 1996 sanctions policy against countries investing in Iran. However, some Turkish energy experts believe Iran is willing to co-operate in resolving the crisis over its nuclear plans, thus opening the way for new investments that would develop the country's rich natural gas reserves.

Turkey has bought Iranian gas since 2001, but the supply is unstable -- facing suspension each year during severe winter conditions.

To avoid this uncertainty, Turkey has started to view Iraq as an option. Last week, Energy Minister Helmi Guler announced that Turkey will work with the United States to boost transportation of Iraqi natural gas and oil. Turkey and the United States also agreed to jointly explore Iraq's energy resources, he said.

Many energy experts believe Turkey must decide whether to intensify co-operation with Iran or explore Iraqi gas and oil resources with the United States. Earlier this week, Turkish Prime Minister Recep Tayyip Erdogan said the government will consider plans for closer co-operation with Iran on energy issues.

"The United States is our ally, our strategic partner. But [neither] the United States nor Israel has the sources to meet Turkey's energy needs," he said.