Monday 16 February 2009

Iran strikes gas deal coup with Turkmenistan

Iran has signed an agreement to help Turkmenistan develop its biggest gas field in exchange for more gas imports.

The tentative deal is a strategic coup for Tehran, which has long sought to establish the Islamic Republic as a transit country for gas from the Caspian region.

It also suggests that Turkmenistan, which has the potential to become a central Asian gas superpower, is intent on establishing a diversified market for its exports.

“Iran will co-operate to develop the Yoloten gas field in Turkmenistan”, said Reza Kasaizadeh, the chairman of National Iranian Gas Export Company, according to the website of Iran’s state-run television. “Iran will act as a contractor and the Turkmen side will pay all the expenses for the project.”

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