Despite other alternative routes, Turkey is still keen on importing more natural gas from Iran as it is economically viable, a senior energy security analyst said.
"Turkish officials have stressed that they are interested in renewing the gas contract with Iran, and subject to prices, are willing to increase import volumes," Omid Shokri Kalehsar was quoted as saying by Mehr News Agency.
Iran exports 30 million cubic meters of the gas everyday to the neighboring state through a pipeline.
"Iran is the world's third largest gas producer, producing 800 million cubic meters of gas a day. But the country is struggling to increase its footprint in global markets, because most of what is produces is consumed domestically," the analyst said.
The reimposition of US sanctions notwithstanding, Turkey will continue importing Iranian gas simply because if does not it will not be able to meet its winter energy demand, especially in the southern regions, the news agency quoted him as saying.
“Importing gas from Azerbaijan via the Trans-Anatolian Natural Gas Pipeline has already started and Ankara will receive Russian gas from the land-based TurkStream gas pipeline soon,” he said, adding that importing Iranian gas is still more appealing to Turkey.
TANAP pipeline will bring gas to Turkey and Europe from Azerbaijan bypassing Russia and the TurkStream pipeline is an alternative to Russia's South Stream pipeline project to bring gas to Europe without passing Ukrainian territory.
Referring to Iran's inability to attract foreign investment in its key energy sector, especially from Turkey, Shokri said with a more robust diplomacy and efficient judicial system Tehran can elevate its attraction as a stable and attractive energy investment destination.
"There is no consensus among executive bodies in Iran regarding energy development," he said, adding that although the government is passionate about dealing with Turkey’s private sector to develop the energy industry, the Majlis insists on using domestic capacity. This is the reason why contracts keep on getting postponed with major companies like Unit International, which is commissioned to build two power plants in Iran.
The expert recalled that Unit International signed a $4.2 billion preliminary deal with the Energy Ministry in June 2016 to build gas power plants in seven regions. Permits for the company’s investment have been issued but there has been no new development since then, he rued.
Shokri believes cordial political relations with neighboring states, reducing the bloated bureaucracy and putting in place a functioning regulatory body and a responsive legal framework can help Iran better introduce its strategic exports, like natural gas, in lucrative overseas markets.
