Iran & Turkey Increase Energy Imports

Energy Rich Iran Boosts Gas Imports From Turkmenistan

According to remarks from Deputy Oil Minister Javad Oujl, Iran has signed a deal to boost annual gas imports from Turkmenistan by about 40% to 14 billion cubic meters.
Under the new deal daily imports will reach 40 million cubic meters. Despite having the world’s second largest gas reserves, Iran currently Imports 25 million cubic meters of gas a day from Turkmenistan.

Before reform efforts, Iran’s energy intensity was four times greater than the world average. Despite only doubling its population over the past three decades, Iran’s energy consumption increased five-fold over the same period. In the past decade alone, Iran’s oil consumption has increased 42 percent, the greatest consumer in the Gulf region. This figure can be compared to decreases recorded in the United States (-4 percent), United Kingdom (-6 percent), Germany (-14 percent), and Japan (-21 percent) during the same time period.

Poor infrastructure development caused by long-term sanctions also eroded Iranian abilities to produce their own energy.

Iran’s northern neighbor cut its gas exports to the Islamic republic for several months in the winter of 2007-2008 over what it said were payment delays and technical issues, now resolved. Iranian President Mahmoud Ahmadinejad inaugurated the new gas pipeline link to Iran from Turkmenistan.

Given its reserves, if Iran’s refineries received updated infrastructure and technology, Iran could potentially eliminate imports altogether.

Iraq Initials New Deal for Turkey Oil Pipeline

In a related development, Iraq has established a deal with Turkey to extend for 12 years the use of the main pipeline linking its northern oil fields to the Mediterranean port of Ceyhan. The renewal of the existing deal which had expired was the result of lengthy negotiations.

Turkey had been seeking an extension of between 15 and 20 years. Turkish Energy Minister Taner Yildlz released an official statement just before the agreement’s expiry indicating that the agreement was signed by Iraqi Deputy 0il Minister Abdul Karim Luaibl and Turkish energy ministry deputy undersecretary Yusuf Yazar.

The 970km pipeline runs from Iraq’s northern oil hub of Kirkuk to Ceytlan from where the crude is shipped to world markets by tanker.

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