Iran and Turkey sign deal for natural gas

Hurriyet Daily News with wires

The accord covers the development of three phases Ğ 22, 23 and 24 Ğ in Iran's South Pars offshore gas field with Turkish investment, as well as gas transfer to Europe via Turkey at a rate of 35 billion cubic meters annually. It envisages the joint construction of a 1,850-kilometer pipeline from the southern Gulf port of Assaluyeh to the Turkish border.

Iranian Oil Minister Gholam Hossein Nozari and his Turkish counterpart Hilmi Güler signed the accord in Tehran.

"It was agreed that 50 percent of the gas from these [three South Pars] phases be sold to Turkey," AFP quoted Nozari as saying. Each phase of the South Pars gas field has been designed to produce 25 million cubic meters of gas a day.

The initial gas deal in 2007 was criticized by Washington, which urges its allies Ğ including NATO member Turkey - to cut business with Iran over Tehran's controversial nuclear program.

"It is normal for Turkey to maintain good relations with its neighbors," Kathy Schallow, spokesman for the United States Embassy in Ankara, told the Hürriyet Daily News yesterday. "Given the U.N. Security Council and other international efforts to convince Iran to live up to its obligations, we continue to strongly discourage countries and companies from pursuing new investments in Iran at this time," she said.