Turkey, Iran gas deal likely soon

ISTANBUL: Turkey and Iran will probably sign a natural gas deal during Iranian President Mahmoud Ahmadinejad's expected visit to the Turkish capital, Ankara, an Iranian official in Turkey said on Tuesday.

Ahmad Noorani, in charge of economic affairs at the Iranian Embassy in Ankara, said the two countries agreed in May on the construction of a new gas pipeline to ensure a steady flow to Turkey, which suffers frequent cuts in gas from Iran during wintertime.

Turkish officials and Noorani say they are expecting a visit by Ahmadinejad but have not announced the date. "We believe the agreement will be signed during the president's visit which is expected soon," Noorani said.

Turkish officials are yet to confirm the deal. On July 19, six major world powers - Britain, China, France, Germany, Russia and the United States set an informal two-week deadline for Iran to accept an economic incentives package in return for curbing its uranium enrichment.

The deadline passed this weekend with no response from Tehran.

Last year, the two countries signed a memorandum of understanding to build a gas pipeline to transport up to 40 billion cubic meters (1,412 billion cubic feet) of gas to Europe per year through a US-backed pipeline that would stretch from Turkey to Austria.

The new agreement would be about another pipeline that would bring gas to Turkey for domestic consumption.

Iran would pay for its construction, which is expected to cost around USD 930 million, Noorani said.