Turkey Iran Gas Pipeline Deal Nears Expiry as Supply Talks Stall

Turkey’s long-term gas pipeline contract with Iran is nearing expiration, raising supply questions as no negotiations have begun on a potential extension.

(Reuters) — Turkey's long-term contract for importing natural gas from Iran is due to expire in the coming months, and the two countries could hold talks on a possible extension, though no negotiations are under way yet, Turkey's energy minister said on April 18.

The agreement, due to expire in July, provides for delivery of 9.6 billion cubic meters of gas a year, but actual flows have often fallen short.

Turkey imported 7.6 Bcm from Iran last year, accounting for 13% of total gas imports. Regulator data show the pipeline last hit the contracted volume in 2022.

"According to our forecast, we might need this gas pipeline or the gas flow from Iran for the security of supply of Turkey. There is no negotiation right now ongoing. I think they are busy with so many other things. But we might sit and discuss a potential extension," Alparslan Bayraktar told reporters on the sidelines of a diplomacy forum in the southern Turkish province of Antalya.

"But we haven't started a negotiation during the current circumstances in the region," Bayraktar said, referring to the Iran war.

Bayraktar also said Turkey was seeking to diversify natural gas supplies, including through Russian liquefied natural gas.

Local media reported this month that Ankara had issued a long-term license for LNG imports from Russia to pipeline operator BOTAS. Regulator records show BOTAS was issued a 10-year import license, so far granted only for countries with which Turkey has long-term LNG supply contracts, including Algeria and Oman.

Asked about LNG imports, Bayraktar said Turkey had not started importing LNG from Russia.

Turkey imports Russian gas via BlueStream and TurkStream pipelines, which together account for about 35% of its overall gas mix.