Botas, Turkey's state oil and gas company, has expressed willingness to renew a natural gas contract with the National Iranian Gas Company that expires in 2026, the head of state-run NIGC said.
“Negotiations are underway, but more talks are needed to agree on a long-term contract that safeguards both sides’ interests,” Majid Chegeni was also quoted as saying by IRNA.
Turkey is also in talks with other gas suppliers, including Russia and Azerbaijan, and clinching new deals with them will certainly affect the terms of its agreement with Iran, he added.
Turkey has let its private sector play a more active role in importing gas and signing contracts with suppliers and “we should follow the same policy,” he added.
Oil and gas sectors in Iran have long been monopolized by the government.
All oil- and gas-related deals are tightly controlled by state-run companies and the private sector is not allowed to conclude any upstream agreements.
NIGC uses the ninth Iran Gas Trunkline (IGAT-9), stretching over 2,000 km, to transfer 30 million cubic meters of gas from Asalouyeh, Bushehr Province, to Turkey.
IGAT is a series of nine large diameter pipelines built to supply gas from refineries in the south (Khuzestan and Bushehr provinces).
“Securing a long-term deal will not be as easy as the one signed in 2001 because now Ankara has a larger range of suppliers to choose from. Turkey is emerging as a more adept gas consumer and negotiator,” Amirhossein Zamaninia, the deputy oil minister for international affairs, said.
“Given the nature of long-term international agreements, such talks normally are interconnected with foreign policy issues and geopolitical considerations,” he added.
Economic experts and analysts have said energy diplomacy and a coherent foreign policy should be at the forefront of Tehran’s gas export strategy.
Grappling with financial problems and lack of advanced technology, it is crucial for Iran to adopt a balanced approach to its gas strategy that includes geopolitical considerations and market realities.
As per a 25-year deal, NIGC started selling gas to Turkey in 2001 and is the second largest gas supplier to the neighboring state after Russia.
