EU advisor: Turkmenistan, Turkey better be excluded from gas related sanctions on Iran

Azerbaijan, Baku, Oct. 10 /Trend S.Isayev, T. Jafarov/ If the sanctions on Iran's gas are imposed, it can also affect Turkmenistan indirectly, EU economic advisor Mehrdad Emadi told Trend, speaking of the latest news on EU preparing a package for imposing gas sanctions on imports of Iran's gas. "This is a very important issue, as Turkmen gas is under negotiations to be exported to Europe via Turkey, passing through Iran," Emadi said. "If the sanctions against Iran are imposed, it means the restrictions would also affect Turkmenistan." Iranian Oil Minister Rostam Qasemi told IRNA on Oct.6 during his visit to Turkey, that his talks with Turkish officials are focused on transition of Iran's gas to Europe, via Turkey. Prior to that, Qasemi said that Iran has started negotiations with Turkmenistan and Turkey regarding the swap of Turkmen gas to EU through Turkey, and the three countries have achieved "good results" in talks. Neither Turkey nor Turkmenistan officials confirmed gas transit talks with Iran, but, according to Turkish state Anadolu Agency, Energy Minister Taner Yildiz announced on Sep. 25 that Turkey is eager to improve pipeline projects with Russia, Azerbaijan, Iran and countries with which Turkey would establish new relationship. Yildiz also noted that Turkey continued energy agreements with Iran, adding that there could be new agreements as well, without revealing any more details. Turkmenistan president also repeatedly has announced that this country wants to diversify gas export routs, but he has not stated anything about the probability of gas swap with Iran. In 2010 Iran's natural gas production was estimated at 146,2 bcm, and this figure reached 151,8 bcm in 2011. Annually, Iran imports some 10,5 billion cubic meters of natural gas from Turkmenistan and exports around 8.5 bcm gas to Turkey annually. Diplomats from EU member states have started preparing a package of sanctions against Iran with a goal of formally adopting them at a meeting of foreign ministers on October 15th 2012 in Luxembourgm, Reuters reported yesterday. "In my opinion, the Western countries would think of some short-term framework, within which the gas will continue to be transported to Europe through Iran, until an alternative is found," Emadi said. The advisor said that the major EU companies have cut down their gas purchases from, yet some intermediary companies still deal with the Islamic Republic on short-term, 45-90 day deals. According to Emadi some European companies purchase Liquid Petroleum Gas (LPG) from Iran and exchange that with Liquid Liquefied natural gas (LNG) in spot markets, then sell LNG to major European companies. "In this context, if all the small contracts are combined, it makes up for a relatively significant volume of gas. If the sanctions are imposed, they will be targeting these smaller intermediary companies," Emadi said. Earlier, Mehdi Jamshidi Dana, a manager for production control at National Iranian Gas Company (NIGC), said that Iran produced more than 466,000 tons of LPG between March 21 and July 22, Press TV reported. Speaking of Turkey's part in the gas-related issues, Emadi said the country is an important ally of the West in the region and Europe, and also has broad economic ties with Iran. In 2011, Iran exported nine billion cubic meters of gas, the bulk of which (8.5 billion cubic meters) was supplied to Turkey, which is the largest importer of natural gas in the region, buying an average of 39.7 billion cubic meters annually. "In short term, considering the upcoming winter, I believe EU should exempt importing Iranian gas by Turkey, while certain processes show that Turkey is en route of decreasing its energy dependence on Iran," Emadi said. "Turkey's case is exceptional, as it probably will continue to rely on Iran's energy, probably less than before, and at the same time will try to keep up with the European Union." Do you have any feedback? Contact our journalist at agency@trend.az