Turkey, Iran to renew natural gas contract - Iranian official

A top Iranian official said that Tehran and Ankara will soon start negotiations for the renewal of the natural gas contract, Tehran Times reported on Monday.

Iran is a key supplier of Turkey’s natural gas and oil purchases, with about 10 billion cubic meters a year of gas under a 25-year supply deal to the country which it uses for electricity generation.

"We will start negotiations to renew the contract in the near future,” Montazer Torbati, the head of the state-owned National Iranian Gas Company, said.

Turkey recently announced that it discovered a total of 405 billion cubic meters of natural gas in the Black Sea, a move hailed by the Turkish government as a game changer.

However, Torbati said the Black Sea discoveries would not affect the contract with Iran.

“The discovery of the new gas field in the Black Sea has no effect on our contract and the discovered reserve is not significant compared to Turkey's demand," he said.