Turkmenistan to triple gas sales to Iran

Gas-rich Turkmenistan, forced to hunt for new markets following an energy row with Russia, said on Wednesday that it would more than triple gas exports to neighboring Iran as part of its diversification strategy.

Russia, which traditionally bought almost all Turkmen gas, stopped imports this year following a pipeline explosion which has escalated into a diplomatic stand-off over new supply terms.

That has prompted Turkmenistan, its budget bleeding key export revenues due to the row, to seek closer ties with alternative buyers such as Iran, China and the West.

Reuters quoted Turkmen Energy Minister Oraznur Nurmyradov telling an annual oil and gas conference in Ashgabat that the Central Asian state's existing gas pipeline to neighboring Iran would double its capacity to 14 billion cubic meters per year.

He gave no timeline for the expansion.

Speaking at the same conference, Deputy Prime Minister Baymurad Khodjamukhamedov said Turkmenistan's planned new pipeline, due to open in December, would supply 6 billion cubic meters (bcm) to Iran next year and double its capacity over coming years.

Turkmenistan, which produces more than 75 bcm per year, used to sell about 50 bcm to Russia's Gazprom and just 8 bcm to Iran.

The Russian pipeline is now technically operational following the April blast, but Moscow, faced with falling demand for gas in Europe and struggling with a recession, demanded a review of the sales terms.

The two sides have yet to agree on the new terms, reported Reuters.

(Source: upstreamonline.com)

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