Turkey says Iran gas pipeline contract nearing expiry, no talks yet on extension

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 underway yet, Turkey's energy minister said on Saturday. The agreement, due to expire in July, provides for the delivery of 9.6 billion cubic metres 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 ongoing negotiation right now. 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. Read: Strait of Hormuz closed again over US blockade, says Iranian military command "But we haven't started a negotiation during the current circumstances in the region," Bayraktar said, referring to the US-Israeli war on Iran. 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 licence for LNG imports from Russia to pipeline operator BOTAS. Regulator records show BOTAS was issued a 10-year import licence, 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.