Iran and Turkmenistan officials are in talks to enhance energy cooperation amid Iran’s gas shortages during winter. Turkmenistan aims to boost gas supplies despite ongoing payment disputes. Iran’s recent abrupt cancellation of Oil Minister Paknejad’s visit signals a focus on resolving negotiations critical for northern provinces’ energy needs.
Top officials from Iran and Turkmenistan convened to discuss enhancing cooperation in oil and gas sectors during Tehran’s efforts to address a severe gas shortage amid frigid winter temperatures. Both nations recognize the urgency to establish better economic ties in energy, indicated by meetings between Turkmen Foreign Minister Rashid Meredov, Iranian Oil Minister Mohsen Paknejad, President Masoud Pezeshkian, and Foreign Minister Abbas Araghchi.
During these discussions, it was emphasized that enhancing gas trade is a priority, as Turkmenistan has expressed willingness to increase gas supplies to Iran, which has been struggling with gas deficits. Despite ongoing negotiations, a significant agreement has yet to materialize as Iraq and Turkey also pursue gas arrangements with Turkmenistan. Meredov highlighted the historical relationship, noting Iran’s position as Turkmenistan’s second-largest gas trade partner since independence in 1991.
Iran’s Oil Ministry sources noted that resuming gas imports from Turkmenistan is essential to meet the demands of its northern provinces during winter. An abrupt cancellation of Paknejad’s visit to Assaluyeh, a crucial hub for gas production, points towards a focus on ongoing discussions with the Turkmen delegation. This cancellation, confirmed by state-controlled Shana news agency, highlights Tehran’s commitment to resolving energy needs.
Although Iran possesses the world’s second-largest natural gas reserves, it has been reliant on Turkmen imports since 1997 to cover high demand in northern regions. Turkmenistan’s Minister Meredov shared that since the 1990s, a total of 107 billion cubic meters of gas has been exported to Iran. However, a signed swap deal in 2021 faces obstacles due to unresolved debts, with Turkmenistan asserting Iran owes approximately $1.8 billion for previous gas transactions.
President Pezeshkian acknowledged challenges in restoring exports, attributing delays to Iran’s ongoing payment issues. He highlighted concerns from Turkmen officials regarding Iran’s reliability as a customer, emphasizing the need for Iran to rectify its payment record to facilitate future energy collaborations.
In summary, Iran and Turkmenistan are engaged in discussions to strengthen their energy partnership as Iran grapples with a significant gas shortage. Despite historical ties and past agreements, unresolved financial disputes hinder negotiations. For Iran to alleviate its energy challenges and secure a stable supply, it must address outstanding debts and restore trust in its economic dealings with Turkmenistan.
Original Source: www.intellinews.com
