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Iran, Turkmenistan Reach New Agreements on Gas Deals

Wednesday 19 December 2012

TEHRAN (Fars News Agency) – Tehran and Ashgabat have reached new agreements on energy deals, an informed source said, adding that Iran will increase its gas imports from Turkmenistan within the next few days and will pay for imported supplies by exporting oil and gas industry equipment to Turkmenistan.

“Turkmenistan has agreed with gas barter (trade) with Iran, and gas imports from Turkmenistan will increase in the next few days,” the source said. He noted that according to an agreement between Iran and Turkmenistan, Ashgabat should export something between 27 to 30 mln m³ of gas to Iran. “Turkmenistan has agreed with increasing its gas exports to Iran to 40 mln m³/day and Iran should instead supply oil and gas industry equipment to that country,” the source said.

In early November, Turkmenistan stopped gas flows to Iran over officially pipeline maintenance but most likely payment issues. The most recent shutoff – which lasted two days – was the third in the last four years, and the second in 2012.

Yesterday, Head of the National Iranian Gas Company (NIGC) Javad Oji arrived in the Turkmen capital, Ashgabat, to discuss mutual economic and trade cooperation, especially gas deals between the two neighbouring countries. Oji, heading a high-ranking economic delegation, is due to follow up on the trend of previous agreements concluded during the last month visit of Iranian Oil Minister Rostam Qassemi to Ashgabat.

The value of annual trade transactions between Iran and Turkmenistan is estimated to be $5 bln. Sale and purchase of gas comprises major part of trade transactions between Tehran and Ashgabat.

Turkmenistan is producing more than 12 mln tons of crude oil and more than 80 bln m³ of gas.

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