Turkey to import Iranian natural gas as part of 25-year deal
Despite US objections, Turkey signed an agreement with Iran to begin importing Iranian natural gas as part of a $ 20
bn, 25-year deal. The United States opposed the gas deal and reportedly pressured Turkey to delay the imports, which
originally were to begin in January.
The protocol signed stipulates that pumping will begin on July 30, 2001, said Gokhan Yardim, general manager of the
Turkish pipeline monopoly Botas. Turkey needs natural gas and sees Iran as the best source of relief from shortages
that left the capital, Ankara, without gas during last year's brutally cold winter.
The $ 20 bn deal was signed in 1996 and called for Turkey to buy 105 bn cf of gas a year from its eastern neighbour
for 22 years. The amount is to be increased to 350 bn cf in 2007.
The sides agreed that in view of the delays, they would extend the deal three years. Iran had demanded compensation
from Turkey for losses resulting from its failure to import the gas by January. But according to the protocol, Turkey
will not pay compensation.
Iran invested about $ 200 mm to construct a pipeline and support facilities to transport the gas from the Iranian
city of Tabriz to Ankara.
Turkey's demand for natural gas is expected to quadruple to 1.6 tcf a year by 2005. Turkey also plans to purchase gas from Russia and Turkmenistan.
