Turkey to invest in Iranian gas

TEHRAN, July 21 (UPI) -- Turkey is preparing to invest $6 billion in developing the Iranian South Pars natural gas field and additional pipeline construction, officials said Monday.

Iran expressed interest in expanding its gas pipeline networks feeding European markets, following a decision by French energy giant Total to divest its interests in several Iranian projects.

Iranian Foreign Minister Manouchehr Mottaki announced the Turkish venture following a meeting with cabinet officials. Turkish Energy Minister Hilmi Guler made similar statements in the past regarding energy ties with the Islamic Republic.

The energy development comes on the heels of the $70 million purchase of the Iranian state-owned Razi Petrochemical Co. by Turkish fertilizer firm Gubre Fabrikalari, the Iranian Press TV said.

Mottaki said the deals were in line with Iranian measures to increase privatization and promote foreign investment in the wake of U.S.-backed economic sanctions.

Tehran signed a memorandum of understanding with Ankara in 2007 to boost bilateral ties in the energy sector.