Turkish Energy Minister Alparslan Bayraktar said on 18 April that Ankara may seek to extend a gas import contract with Iran, which is due to expire in July, although formal negotiations have yet to begin. The agreement allows for delivery of up to 9.6bcm annually but Iranian supplies have been irregular due to rising domestic demand, particularly during winter. Iran exported a record 9.43bcm in 2021 but volumes fell to 5.41bcm in 2023. Last year, Turkey imported 7.81bcm from Iran, equating to 13.5% of its total imports. Turkey relies heavily on pipeline imports from Russia, Azerbaijan and Iran, though it has increased US LNG purchases in recent years, which amounted to a record 9.21bcm last year.
Recent Israeli strikes on Iran’s energy infrastructure have added further uncertainty to how much volumes Iran can commit to in the future (MEES, 20 March). While some onshore gas processing plants were hit last month and petrochemical facilities sustained serious damage earlier this month (MEES, 10 April), overall gas processing capacity remains largely intact. Lower gas feedstock demand for petrochemicals could free volumes for export to Turkey, potentially supporting higher flows. Mr Bayraktar noted that the Iranians were “busy with so many other things. But we might sit and discuss a potential extension.” (CONTINUED - 204 WORDS)