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    Today's Zaman: Turkey seeks to build Iran pipeline amid uncertain environment

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Summary

The Turkish government is quietly intensifying its efforts to reach an agreement with Iran to build the Iran–Turkey–Europe Natural Gas Pipeline Project (ITE) to convey natural gas sourced in Iran via Turkey to Europe.

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Asia/Oceania

Today's Zaman: Turkey seeks to build Iran pipeline amid uncertain environment

The Turkish government is quietly intensifying its efforts to reach an agreement with Iran to build the Iran–Turkey–Europe Natural Gas Pipeline Project (ITE) to convey natural gas sourced in Iran via Turkey to Europe despite uncertainty concerning the future of sanctions on Iran.

Turkey has already taken concrete steps for the construction of the pipeline to transfer Iranian natural gas to Germany via Turkey. Turang Transit, the Turkish firm that will build the section of the pipeline located in Turkey recently received an incentive certificate that includes an exemption from the value-added tax (KDV) and custom taxes. Turkey will also provide other tax reductions and the employer insurance premium, according to the incentive certificate documents for December 2013 published by the Ministry of Economy.

But the framework of the pipeline project is unclear due to the fact that it is unknown whether or not an interim deal reached between Iran and six world powers to curb Iran's nuclear ambitions in exchange for easing economic sanctions will continue after the initial six month period.

Hasan Selim Özertem, an analyst on Eurasia and energy security at the International Strategic Research Organization (USAK), told Sunday's Zaman that Turkey has long been conducting feasibility studies for the pipeline but has not released the details to the public due to the uncertain environment regarding sanctions on Iran. MORE