Turkish firms in northern Iraq a source of opportunity for Nabucco pipeline

Demir spoke to reporters regarding a recent natural gas agreement between Turkey and Iran and discussed the potential path for the Nabucco pipeline. While emphasizing the importance of minimizing supply interruptions and forming a competitive price atmosphere for natural gas, he noted that Turkey’s strategic agreements with Iran would provide a variety of sources for procurement.

Regarding Iran’s candidacy as the initial and primary source for Nabucco, Demir noted that Iran would not be ready to supply the minimum 8-12 billion cubic meters (bcm) for the pipeline by 2014 but that it would be ready to supply Turkey’s natural gas demands by 2018.

Demir asserted that Iraq would be a more promising candidate as the initial and primary source for the pipeline. Regarding Iraq’s production capacity, Demir said, “Taking into account only northern Iraq, believed to have 40 bcm of natural gas, it is highly likely that we can extract up to 10 bcm by 2014.” He continued by stating the importance of the period of withdrawal of US troops from the region and emphasized that “it is important to be ready for surprises during this period; it is especially important for petroleum and natural gas companies to be ready.”

Demir noted that firms participating in the Nabucco project were readying themselves to undertake the work on the pipeline passing through their countries. With respect to Turkey, Demir noted that the to-be-formed Nabucco Turkey Co. would be hiring technical and engineering staff to start pre-construction work by January. He noted that the firm would create many jobs for engineers and technical workers in Turkey.

Demir also mentioned the importance of İnci Gaz, formed as a joint venture by Türkerler Construction and United Arab Emirates-based Crescent Petroleum to distribute natural gas brought in through the Turkey-Iraq border. “I predict that İnci Gaz will obtain nearly 30 percent of all natural gas income from the northern Iraq region. It will thus take in 3 billion euros per year for at least 30 years from natural gas alone.” This project, Demir emphasized, shows the increasing importance of Turkish petroleum and gas firms. The energy security expert said the success of İnci Gaz meant “increased investments for Iraq.”

“Turkish firms like İnci Gaz,” Demir noted, “would support the stability and prosperity of the region and increase bilateral economic relations.”