News & Reports News Year 2010 December , 2010 Turkmenistan, Iran to hold energy talks in Tehran

Turkmenistan, Iran to hold energy talks in Tehran

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A Turkmen delegation, headed by Deputy Prime Minister Baymurad Hojamuhammedov, will discuss issues of cooperation in oil and gas industry in Tehran on Saturday, official sources said.

A new contract for additional sale of Turkmen natural gas is being prepared in connection with the introduction of a new gas transportation system linking the Turkmen Dovletabad gas field and Iranian settlement of Sangbast. Under the project, the gas pipeline would provide an opportunity to increase supply up to 12 billion cubic meters of gas annually. Taking into account the Korpeje-Kurt Kuy gas pipeline operating in West Turkmenistan, Iran will annually purchase from Turkmenistan up to 20 billion cubic meters of gas in total.

New supplies are designed to meet the fuel needs of north-eastern Iran, in particular, provinces of Semnan, Mazandaran, Golestan, Khorasan Razavi, North Khorasan, and South Khorasan.

The project was implemented within the framework of the agreement signed on July 2010 between the state company Turkmengaz and National Iranian Gas Company (NIGC). The parties agreed to increase the export of Turkmen gas to Iran from 8 billion cubic meters up to 14 billion cubic meters in 2010, and up to 20 billion cubic meters a year in the long term.

In addition, the two sides are discussing the electricity supply and mutual payments for it. The two countries study the project to boost the supply of Turkmen electricity to the neighboring provinces of Iran.

The national socio-economic development program of Turkmenistan for 2011-2030 provides for electricity production in the country to reach 25.5 billion kilowatt hours per year, and its exports to increase up to over 11 billion kilowatt hours per year. In September 2010, the government said that Turkmenistan is systematically increasing its supply of electricity to Iran, Afghanistan and Turkey.