Gas Export to Turkey Resumes

Gas Export to Turkey Resumes
Gas Export to Turkey Resumes

Iran has resumed gas exports to Turkey after Botas, the country's gas importing company, said it is ready to re-receive gas, dispatching director at National Iranian Gas Company, Manouchehr Taheri, said late Sunday.

The pipelines have been fixed and gas flow has resumed at a rate of 20 million cubic meters per day, Shana reported Monday.  

On July 28, the pipeline was attacked in Turkey's eastern province of Agri, halting the flow in the 40-inch pipeline for almost a week. An explosion occurred as a result of sabotage about 15 kilometers inside the Turkish border. The blast caused a fire that was swiftly put out.

Turkey buys around a quarter of its 40 billion cubic meters of piped natural gas imports from Iran, making its eastern neighbor its second biggest supplier after Russia. Natural gas is used for almost half of Turkey's electricity generation.

Turkey receives more than 90% of Iran’s natural gas exports under a long-term contract, which amounts to around 10 million cubic meters of gas per annum.

 Iran exports natural gas via pipelines to three neighboring countries, namely Turkey, Armenia and Azerbaijan. Armenia and Azerbaijan have swap arrangements with Iran, which account for 6% and 3% of Iran’s natural gas exports, respectively.

  Rise in Export Capacity

The infrastructure to double gas exports to Turkey has been established, including the installation of new electric motors in Tabriz Natural Gas Compressor Station, deputy operations manager at NIGC said.

"The station's transfer capacity, which previously stood at 35 mcm/d, has now been doubled," Abdolhossein Samari added, noting that the rise in transfer capacity will lead to an increase in gas exports to Turkey.

Iran reached a preliminary agreement with Turkey in June to increase the amount of gas flow from Iran to Turkey and to modify the price at which gas is sold to the neighboring country.

The agreement was signed following lengthy disputes over price. Iran said in April it will not reduce the price of gas it exports to Turkey unless a new contract is signed between the two neighbors whereby the Turks agree to increase the amount of gas they import from Iran.

  Iraq Pipeline Trial Ends

The test-run of the 100-km-long gas export pipeline to Iraq has ended and the pipeline will be ready for gas transfer by the end of August, Managing Director of National Iranian Gas Engineering and Development Company Alireza Gharibi said.

 Currently, water is being pumped out of the pipeline, which stretches from Chahar-Meleh in Ilam Province to Naft-Shahr in Kermanshah Province.

In Phase I of this project, 5 million cubic meters per day of gas will be exported, using the extension from Iran gas trunkline. Upon completion of IGAT VI, the volume can be increased to 25 mcm/d of gas.

Tehran and Baghdad signed a draft deal in 2013 to transfer Iran’s gas to two Iraqi power plants. There are plans to export 30-50 million cubic meters of gas per day to Iraq, which is estimated to cost $4 billion to $6 billion.