Turkmenistan terminates gas supply to Iran

Turkmenistan has halted exporting gas to Iran due to non-payment of arrears, a move that has arrived only days after Iran stated that the problem has been temporarily resolved. 

Iran’s state-owned firm National Iranian Gas Company (NIGC) issued a statement informing about the halt of gas supply.

Türkmengaz is the national oil company of Turkmenistan and stopped the supply against the agreement. 

NIGC also urged consumers to reduce their gas consumption, it is however, hopeful that an increase in production and restricted use will help tackle the shortages in the winters, reported Reuters.

Last week, Iraninan oil minister Bijan Namdar Zanganeh claimed that the arrear issue was resolved and Turkmenistan will continue to supply gas. 

Turkmenistan previously threatened to stop exporting gas to Iran if the arrears were not paid, however, Iran favoured arbitration.

It is estimated that the arrears reach nearly $1.8bn.

Iran has vast natural gas reserves in the southern part but has been importing gas from Turkmenistan since 1997 to cater to its northern provinces.

This halt will leave Turkmenistan with only one overseas customer, China. 

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Image: Office of the Ministry of Oil and Gas of Turkmenistan. Photo courtesy of Jim Fitzgerald / Wikipedia