Iran, Turkey’s important natural gas supplier despite cutoffs

January 7, 2007 - 0:0
ANKARA (Zaman Online) -- Following Iran’s cutoff of natural gas because of the growing domestic consumption, Turkey began seeking alternatives to prevent future troubles.

In a press conference, Minister of Energy Hilmi Guler assured that the administration would take necessary measures to ensure Turkish citizens would not be affected by the cutoffs. Botas authorities also underlined that they have taken all necessary measures to meet the demand for natural gas.

Botas Deputy General Director Saltuk Duzyol noted that despite the cutoffs, Iran still remained a major natural gas supplier for Turkey. However, he also stressed that Turkey would resort to international arbitration if Iran would not pay compensation in connection with its noncompliance with the natural gas agreement between the parties.

Recalling that there were no problems in terms of system balances, Duzyol assured that Botas would be able to meet the household demands for natural gas in any case. Duzyol added that Turkey continued its natural gas purchase from spot markets. However, Saltuk Duzyol also added that if it persisted, the natural gas shortage could have serious repercussions in the long run.

While Iran will reportedly resume its regular natural gas flow, Minister Hilmi Guler announced that they have contacted Iranian authorities to resolve the matter. Noting that Turkey has already opened the case to international arbitration, Guler underlined that they, however, would not seek the annulment of the agreement.

Botas recovers the deficit caused by the Iranian cutoffs from other sources such as the Russian Blue Line and Western Line. Meanwhile, Botas authorities are meeting with the Malaysian spot market suppliers to purchase liquefied natural gas (LNG).

Iranian gas cutoff leads Botas to seek Malaysian gas

Asserting that its already-insufficient domestic supplies were being delayed by heavy weather conditions, Iran completely stopped the flow of natural gas to Turkey on Wednesday.

The Tehran administration, which has been cutting off the flow for the last three weeks cited their inability to meet the domestic demand as the reason for the decision. The Iranian cutoff raised concerns in Turkey and led the authorities to take immediate action. Botas authorities announced that the matter was being handled properly. Botas, which attempts to purchase liquefied natural gas (LNG), is also focusing on spot gas markets of Algeria and Malaysia. Botas authorities have already held discussions and negotiations with their Malaysian counterparts to purchase LNG.

Iran, which was selling 27 million cubic meters natural gas to Turkey daily before December, has gradually dropped this amount to 4 million cubic meters since then.

The Iranian Oil Minister Kazem Veziri Hamaneh, calling Turkish Minister for Energy Hilmi Guler after the complete cutoff, told him that because of high domestic consumption associated with the extremely cold weathers they had to make this decision. Noting that they called on the Iranian people to decrease their gas consumption, the Iranian minister said that if the Iranians would be more responsible he could guarantee that gas exports to Turkey would resume soon. Hamaneh further said they hoped to activate the natural gas facility in the southern province of Fars and resume gas flow to Turkey.

Turkey says Iran gas exports seen resuming by Monday

Iran has still not restored natural gas exports to Turkey but has said gas flow will resume by Monday at the latest, a Turkish energy official told Reuters on Saturday.

Last weekend, Iran suspended gas supplies to Turkey after cold weather boosted domestic demand. It had told Turkish officials this week it expected gas flow to be secured by Saturday.

"There is still no gas. They informed us that they will supply 10 million cubic meters tomorrow or by Monday at the latest," said an official from Botas, Turkey's state-run pipeline company, after consulting with Iranian officials.

Last month, Iranian gas exports to Turkey fell by nearly 75 percent due to technical problems.