Iran and Turkmenistan are in talks to enhance cooperation in the oil and gas sectors as Iran experiences severe gas shortages. Iranian officials are keen on resuming gas imports from Turkmenistan, which has been a significant supplier since 1997, but unsettled debts complicate negotiations. Both nations emphasize the importance of improving bilateral economic ties.
Top energy and foreign affairs officials from Iran and Turkmenistan convened to discuss strengthening cooperation in the oil and gas sectors, particularly as Iran faces a gas shortage compounded by severe winter weather. The Shana News Agency reported on February 12 that Iranian Oil Minister Mohsen Paknejad held talks with Turkmenistan’s Foreign Minister Rashid Meredov and President Masoud Pezeshkian.
Iran has been pursuing a significant gas agreement with Turkmenistan to fulfill its rising domestic demand. Despite Turkmenistan’s willingness to increase gas supplies, negotiations have not yielded results. Simultaneously, Iraq and Turkey are seeking to establish gas swap agreements with Turkmenistan and Iran, complicating the dynamics of the situation.
During the discussions, Minister Paknejad emphasized that enhancing economic relations with Turkmenistan in the oil and gas sectors has been a priority for the current Iranian administration since taking office in August. This commitment is supported by both Iranian and Turkmen leadership. Meredov remarked that his visit aimed to advance the objectives established by senior officials from both nations.
Meredov noted Iran’s longstanding role as Turkmenistan’s second-largest gas trading partner since the latter’s independence in 1991. An anonymous source from Iran’s Oil Ministry disclosed that Tehran is intensifying efforts to resume gas imports from Turkmenistan to address shortages in northern provinces, particularly during the winter.
Recent reports indicate that Minister Paknejad canceled a planned visit to Assaluyeh, a crucial hub for gas extraction, due to ongoing negotiations with the Turkmen delegation. Despite being home to the world’s second-largest natural gas reserves, Iran has relied on Turkmen gas imports since 1997 to meet energy needs in its northern regions. Turkmenistan has reported exporting a total of 107 billion cubic meters of gas to Iran since the 1990s.
However, unresolved financial disputes are hindering the process, as Turkmenistan claims Iran owes approximately $1.8 billion in unpaid debts. Previous negotiations have faltered due to this financial issue, with Iranian officials, including Pezeshkian, acknowledging that Turkmenistan has been hesitant to resume exports due to concerns over Iran’s payment history.
In summary, Iran and Turkmenistan are engaged in discussions to boost gas imports to alleviate domestic shortages, with a focus on strengthening their energy cooperation. However, financial disputes over unpaid debts have complicated ongoing negotiations. Iran’s reliance on Turkmen gas and the historical context of their trade relationship highlight the challenges faced in establishing a sustainable agreement.
Original Source: www.intellinews.com
