Azernews.Az

The European Union has decided to tighten sanctions on Iran by imposing a ban on the import of fuel from the country. Such an agreement was reached last week, the foreign media reported, quoting the source familiar with the situation.

Although the European Commission refused to comment on the decision, calling the information appeared in the press rumors, this possibility shouldn't be excluded. The EU has already demonstrated its commitment to fight against Iran's nuclear program through sanctions. The EU embargo on imports of Iranian oil is in force since July.

In the case of the ban on gas imports, the EU will have not much to lose. Iranian gas directed to Europe in minimum amount. The main consumer of Iranian gas is Turkey.

Turkey imported 39.7 billion cubic meters of gas in 2011, the Turkish state pipeline company Botas said. Russia ranks first among the exporter of gas to Turkey followed by Iran and Azerbaijan.

There is an agreement between Turkey and Iran on deliveries of 10 billion cubic meters of gas per year (30 million cubic meters per day) to Turkey, signed in 1996. The export of Iranian gas to Turkey increased by 12 percent in 2011 compared to 2010, amounting to 24 million cubic meters of gas per day.

Iran is an important exporter of natural gas to Turkey, but the country may stop buying Iranian gas in the future by increasing supplies from other countries, namely Russia and Azerbaijan.

Turkey had earlier expressed intention to stop importing Iranian gas due to Iran's refusal to lower prices for exported fuel, and compensate the lack of gas from other sources.

Azerbaijani gas can be one of such sources for Turkey.

According to the existing contract, Turkey must receive 6.6 billion cubic meters of gas in the frame of the first stage of development of the Azerbaijani Shah Deniz field. However, Turkey did not get annual contracted volumes of Azerbaijani gas. Possible refuse of Turkey to import Iranian gas will allow the country to comply with its contractual obligations to Azerbaijan, as well as to receive gas from the second phase of Shah Deniz development, in full volume - six billion cubic meters.

The introduction of the EU embargo on Iranian gas is also further increase the importance of Azerbaijani gas as an alternative source of supply to the European market, as well as its role in the energy security of Europe.

Despite the fact that Iran ranks second in terms of natural gas reserves, it can't make full use of the existing potential and realize their desire to enter the European market due to nuclear ambitions. If earlier the country made statements regarding the agreements with Turkey on transit of gas through Turkish territory to Europe, then the possible introduction of new sanctions can close the door for Iran in that direction.

According to BP, the proven gas reserves of Iran amounted to 33.1 trillion cubic meters at the beginning of 2012, accounting for 15.9 percent of total world proven reserves of this fuel. Gas production in the country, according to BP, amounted to 151.8 billion cubic meters in 2011, which is 3.9 percent more than in 2010.