BAKU, Azerbaijan, Nov. 4 (UPI) -- The gas agreement signed between Turkey and Iran in October could bring Iranian gas supplies to Europe through the Nabucco pipeline, analysts said.
Turkey agreed to fund several energy projects in Iran during bilateral talks in October.
Europe aims to diversify its energy sector with the Nabucco pipeline. Despite the political backing for the project, it lacks firm commitments from potential suppliers.
Iran sits on some of the largest gas reserves in the world, though Western-backed sanctions complicate its export potential.
Andrew Reed, a researcher at U.S. Energy Security Analysis Inc., tells the Trend news agency in Azerbaijan that the Turkish-Iranian deal is a boon for Tehran.
"Turkey's current foreign policy of 'zero problems with neighbors' is a positive development for Iran's development of energy relations with Ankara," he said.
Sources in the Nabucco consortium, however, said Tehran needs to address its political and nuclear issues before it joins the project.
"Once the political environment permits Iranian gas to be delivered to Europe then Nabucco would of course be the natural transportation route to achieve such," the anonymous source said.
Construction on the pipeline is scheduled for 2011 with first deliveries set for 2014, the report said.