Tehran, Ankara Agree on Gas Export Timetable
CNN Turk said the two sides agreed to start the export in the second half of September.
A metering station in Iran was not ready for operation, Turkish Energy Minister Zeki Cakan said in a written statement cited by the television network.
"Turkish authorities are waiting to receive a certificate of suitability regarding the metering station, which will be issued at the end of tests and examinations by Turkish and Iranian technical commissions," the minister said.
Turkish experts have been in Iran for the tests since July 25.
Different comments were made on Sunday and Monday on the start of the gas exports. Almost all Iranian officials agreed on the complete readiness of the pipeline, while the Turkish side raised issues such as technical problems with the measurement station.
Iran and Turkey agreed in 1997 that Iran would export 10 billion cubic meters of gas annually to the neighboring country for 25 years.
The pipeline was to go on stream as of the beginning of the year 2000, but it was postponed to July 2001 due to delays in completing the project.
Under the deal, Iran would initially supply three billion cubic meters (105 billion cubic feet) of gas a year and increases it gradually to 10 billion cubic meters (350 billion cubic feet) in 2007. A total amount of 225 billion cubic meters of gas is to be imported by Turkey during the 25 years.
The Iran-Turkey pipeline extends for 2,557 km inside Turkey and is expected to supply 57 Turkish villages by 2003.
In the meantime, BBC Radio reported that the delay was mostly due to U.S. economic pressure on Iran.
BBC radio said: "While the Iranian Oil Ministry had announced it would start the export as of Monday, the Turkish Energy Ministry announced it could not import the Iranian gas due to technical problems.
However, the Iranian deputy oil minister announced that there had been no serious technical or legal problem to halt the exportation process.
Commenting on the postponements, Iranian oil expert Dr. Mahdi Qorban said he was not fully aware of the cause of the recent delay, but elaborated on the previous ones.
According to Qorban, Iran had fulfilled all its commitments in the project, but Turkey had failed to complete its part of the pipeline laying project. At the time, Turkey said that U.S. economic sanctions were the reason for the failure and extended its deadline to lay pipelines.
Now, if Turkey claims that the delay is due to technical problems, the problem can be solved in ten days, Qorban told the radio. However, he said that if there had been any political issues between the two countries, no specific date would have been given for commencement of the export.
Answering a BBC question on whether the project was practicable or not, Qorban said it was. Qorban said the two sides had spent a great deal on the project and that it should have a result.
According to Qorban, the agreement is on the takeover pay basis, i.e. the Turkish side must pay for the gas even if it decides it does not want the gas. He said that if the project had went on stream last year, Iran would have already gained revenues of 240 to 300 million dollars.
"So, Iran will not ignore its interests, and if the Turkish side intends not to purchase Iranian gas, it has to pay for it according to the agreement," he added.
He also pointed to Turkey's recent agreements with foreign countries in the energy sector, saying that Turkey needs energy, gas in particular, to revitalize its ill economy.
He also advised Iranian officials to change their policies in the gas export field, saying that Iran, which possesses the world's second largest gas reserves, should prioritize gas exports and not put gas exports on the bottom of the agenda of gas policies. Elaborating on the comment, he said that Iran uses gas first for consumers, then for petrochemical uses and then exports the rest. He said that a country which is committed to export a specified amount of gas for 25 years should change this policy and concentrate on exports.
Iran is increasing its gas exports and will possibly have Armenia and India as future costumers of its gas.