Iran, Turkmenistan reach gas deal

ASHGABAT, Turkmenistan, July 13 (UPI) -- Turkmenistan agreed to construct a new pipeline to the Iranian border as part of an effort to boost gas supplies to the Islamic republic, officials say.

Reza Kasaeizadeh, director of the National Iranian Gas Export Co., led a delegation to meet with his counterparts at Turkmen state-run gas company Turkmengaz during the weekend.

The Turkmen Foreign Ministry said it had emerged from the meetings with agreements to increase its gas sales to Iran from 282.5 billion cubic feet per year to nearly 500 billion cubic feet per year, RIA Novosti reports.

Turkmenistan had delivered a substantial portion of its gas through a pipeline to Russian from its Dovletabad gas field. That line lays idle, however, following disruptions in April, which Turkmenistan blamed on unscheduled gas reductions from Russian energy giant Gazprom.

Energy ties between Iran and Turkmenistan soured in 2008 when Turkmenistan halted gas shipments to Iran, citing technical difficulties and complications from financing pipeline maintenance.

A delegation from Ashgabat arrived in Tehran in February, however, to move ahead with a deal to renew energy ties.

Turkmenistan said the gas increase to Iran would come from Dovletabad and other fields. A new pipeline to the Iranian border would handle the additional volumes.