A gas deal between Iran and Turkey will secure the annual delivery of 5.5 billion cubic meters of gas to Europe through a pipeline scheduled to be complete in 2010.

The Swiss company Elektrizitats-Gesellschaft Laufenburg (EGL) has started negotiations with Turkey on a transit deal necessary for the transfer of Iranian gas to Europe.

In March 2007, the National Iranian Gas Export CompanyNational Iranian Gas Export Company (NIGECNIGEC) signed a long-term contract with EGL to sell natural gas on the DAF basis Iranian-Turkish border beginning from 2012.

“First deliveries of the Iranian gas will take place in the next year, provided we will receive the necessary gas transit agreements from Turkey,” EGL Spokeswoman Lilly Frei told the Trend Capital.

Frei however added that “if the international community imposes any new sanctions that will touch the gas sector, of course, we will obey.”

Swiss Foreign Minister Micheline Calmy-Rey visited Tehran in 2008 to sign the gas deal with Iran in a bid to reduce Europe’s dependence on Russian gas. The gas deal between Iran and Swiss however angered Washington which tried to pressure the country into canceling the agreement.

After warnings from the US Embassy in Bern about the 25-year natural gas deal, Calmy-Rey said Bern does not need Washington’s permission to advance its strategic interests.

The deal does not violate the UN Security Council resolutions or US sanctions imposed on Iran, Calmy-Rey said during the visit.

EGL was founded in 1956 in Laufenburg and is active in the trade of gas and electricity.

Secure Route
The gas deal secures the annual delivery of 5.5 billion cubic meters of gas to Europe through a pipeline scheduled to be complete in 2010. The Swiss energy group has said the value of the deal is above $13.32 billion.

However, George Crowl, the American senior diplomat and official for the Central Asian countries affairs, had said earlier that Iran is a secure route for the Central Asian countries’ gas exports to the western and European countries.

“The US welcomes replacement of Iran for Russia to export gas from the Central Asian countries to Europe,” Crowl was quoted as saying by AP.

Announcing that Russia could be regarded as a secure route no more, he said explosion in Turkmenistan gas pipeline proved that Russia could not be regarded as a proper route for gas exports to Europe and big Central Asian gas producing countries could export their gas via Iranian territories to the European countries.

Managing director of Nabucco pipeline project Reinhard Mitschek also stated that Europe looks for Iran gas to supply demanded energy for the proposed pipeline project.

“A final investment decision, expected in 2010, to build the Nabucco gas pipeline from the Caspian region to Europe should spur a multi-national search for gas to fill it, Mitschek said.

He said fears that repeated delays to the 3,300 km pipeline project to wean Europe off its dependence on Russian gas could mean Caspian gas being grabbed by countries like China were unfounded.

“I am sure that once the pipeline has been decided and the final investment decision is taken that will attract additional exploration and production activities in central Asia and the Middle East,” he said.

“We see gas from Azerbaijan, Turkmenistan, Iraq, Egypt, even from Iran and Russia. We do not exclude Iran or any other source. We are confident that the pipeline will reach plateau level earlier than expected.”

Mitschek said Europe’s long-term gas demand growth was enough to justify several gas pipelines and that Russian gas export monopoly Gazprom’s and Italian oil firm Eni’s South Stream pipeline, was not a rival to Nabucco.

Experts say Europe’s hunger for natural gas and its lack of reliable suppliers, as well as the fact that by 2030, it will depend on foreign producers for 85 percent of its gas (a big jump from the current 57 percent) clearly means that it has no other option but to also court gas-rich Iran.

© Iran Daily 2009

 

Community Comments (0) - Comment on this article

The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.

 

 

 

close x

Loading ...

 

close x

Report Abuse

Loading ...

 

 

close x

Loading ...