* Iran ministry says 1 billion euro deal signed
* Turkish company Som Petrol says it signed with Iran
* Turkish minister says govt not involved
* Turkey says other talks on Iran gas field halted
(Adds Iran official's quotes, Turkish reaction)
TEHRAN, July 23 Iran's Oil Ministry said the
country had signed a 1 billion euro ($1.3 billion) pipeline deal
to take gas to Turkey, while Ankara denied the Turkish state was
involved and a firm called Som Petrol said it was the partner.
"The one billion euro deal to build 660 km gas pipeline was
signed on Thursday during the Iranian Oil Minister's trip to
Turkey," the Iranian oil ministry said in a statement.
A senior Iranian official said Iran would pay a transit fee
to export its natural gas to Europe using the pipeline crossing
"The deal was signed between National Iranian Gas Export Co.
and Turkey's ASB Co.," Javad Oji, head of the NIGC, told the
Iranian Oil Ministry's official website SHANA.
"The pipeline will enable Iran to export 50 to 60 million
metres of gas per day ... It will be constructed within three
One of the world's biggest oil and gas producers, Iran has
been hit by U.S. and U.N. sanctions that have hindered access to
foreign investment and slowed its development as a major
Turkey's Energy Minister Taner Yildiz said neither the
Turkish government nor the state pipeline concern Botas had
signed such a deal with Iran.
"Neither the government of Turkey nor Botas are involved in
the 1 billion euro pipeline deal with Iran. Several private
firms are known to be interested in a pipeline (with Iran),"
Yildiz added that Turkey's talks concerning Iran's giant
South Pars gas project had also failed to result in an agreement
and had been cancelled.
In Ankara, Turkish energy firm Som Petrol's Chairman Sitki
Ayan said on Friday his company signed a 1 billion euro ($1.29
billion) pipeline deal with the Iranian National Gas Company.
Ayan told Reuters that the pipeline would carry 110 million
cubic metres of gas per day and is planned to be completed in
Turkey is heavily dependent on energy imports and Iran is
its second-biggest supplier of gas after Russia. Iran exported
10 billion cubic metres of gas to Turkey last year.
Turkey and Iran have been aiming to expand their cooperation
in energy, and Turkey had promised to invest $5.5 billion in
developing production of 20-35 billion cubic metres of gas a
year from Iran's South Pars field. [ID:nnLDE65906N]
A gas pipeline from Iran was hit by an explosion in eastern
Turkey this week near the border. [ID:nLDE66K0TV]
Turkey said in April Iran may export gas to Switzerland via
Turkey in exchange for a transit fee to Ankara if it does so.
Iranian authorities have said Turkey would need to give its
consent for the transit and the deal would then be signed with
European Union foreign ministers will adopt tighter
sanctions against Iran next week, including measures to block
oil and gas investment and curtail its refining and natural gas
capability, EU diplomats told Reuters on Tuesday.
Western countries suspect that Iran's nuclear development
work, which Tehran says is aimed at generating peaceful nuclear
power, could be intended to produce weapons.
To see a graphic from Botas on the pipeline link with Iran:
(Writing by Parisa Hafezi, additional reporting by Tulay
Karadeniz, Orhan Coskun and Selcuk Gokoluk in Ankara, Editing by
Anthony Barker and Sue Thomas)