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Iran, Turkey gas deal may help Nabucco

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Published: Nov. 11, 2008 at 4:16 PM
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ANKARA, Turkey, Nov. 11 (UPI) -- Turkish energy officials said they planned a November meeting in Iran to finalize a gas deal that may prove promising to the Nabucco pipeline, officials said.

Both countries in 2007 moved on a preliminary $3.5 billion agreement to develop the Iranian South Pars gas field. Iranian President Mahmoud Ahmadinejad in August visited Istanbul to negotiate the final stages of the deal, but left without a formal arrangement.

The deal is likely to hurt Turkish relations with the United States. But Mete Goknel, former director of the Turkish state-owned pipeline firm, BOTAS, said Washington's concerns should not trump moves to ease regional dependency on Russian natural resources, the Turkish daily Hurriyet reported Tuesday.

"Turkey's stable relations with its neighbors Russia and Iran should not be deemed unfavorable by the West," he said. "On the contrary, this offers a suitable basis for the resolution of challenging conflicts."

Any deal with Iran and Turkey is likely to accelerate plans for the development of the Nabucco pipeline from Turkey, said Goknel, noting some analysts have expressed concerns over sufficient supply for the route intended to bring gas to European markets.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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