July 15th, 2007 10:12 EST
Iran pipes gas to Europe via Turkey
Tehran and Ankara have signed a Memorandum of Understanding that allows the export of Iran's natural gas to European countries via Turkey.
Iranian Oil Minister Seyyed Kazem Vaziri Hamaneh and Turkish Minister of Energy and Natural Resources Mehmet Hilmi Guler signed the preliminary agreement following several rounds of talks.
Both sides will be cooperating to carry out the pipe laying project, which is set up on a fifty-fifty basis.
Providing a major boost to Iran-Turkey ties, the transit deal will open a new export market for the country's massive reserves.
The MoU also includes the permission to transit natural gas from Turkmenistan to Turkey via Iran as well as Tehran's approval for Ankara to develop three phases of Iran's South Pars gas field, Hamaneh told IRNA.
"The details of the agreement will be discussed in the coming month by Iranian oil and gas officials on the country's panel of experts," he added.