Iran wants better gas ties to Azerbaijan

TEHRAN, Sept. 1 (UPI) -- Tehran and Baku have exchanged a series of letters in preparation for talks on gas trading scheduled after the holy month of Ramadan ends, an executive said.

Javad Oji, the director of the National Iranian Gas Co., said the sides were exchanging a series of letters regarding natural gas swaps.

He said Azerbaijan could send as much as 176 million cubic feet of gas to Iran. He said Tehran's policy is to buy Azeri gas and sell it back to consumers in the landlocked Azeri enclave of Nakhjavan, the Iranian Oil Ministry's Petroenergy Information Network reports.

Tehran adds that the mountainous terrain in its northern provinces prevents transits from energy-rich regions in the south of the country, forcing it to rely on imports.

Baku, for its part, was interested in expanding pipeline transits to Iran because current infrastructure was inadequate for increased gas exports.

The gas director said a delegation would head to Baku to discuss gas deals when Ramadan ends later in September.