Iran angered by Turkmen gas cut, still wants imports

By Edmund Blair - Analysis

TEHRAN (Reuters) - Turkmenistan's move to cut gas exports to Iran in December may have sparked Iranian threats to find other suppliers but logistical needs and commercial logic mean Tehran will not want to abandon the trade.

Industry experts say it makes sense for Iran to continue Turkmen gas imports to feed a northern Iranian region that is difficult to supply from its big southern fields.

But the row may spur Iran, which sits on the world's second biggest gas reserves, to develop its resources faster, they add.

On Tuesday, Russia's Gazprom, the world's top gas producer, agreed to take on big new energy projects in Iran including developing more phases of the South Pars gas field.

Turkmenistan halted daily gas deliveries at the end of December of up to 23 million cubic meters, citing technical issues. Iran, suffering a bitterly cold winter, accused Ashgabat of an "immoral" tactic to get a higher gas price.

The row with Turkmenistan was felt further afield, as Iran cut exports to Turkey, which in turn cut supplies to Greece.

Oil Minister Gholamhossein Nozari said in January Iran could find other gas suppliers if Turkmenistan did not resume pumping.

But, since then, Tehran has continued to speak about resolving the row with Ashgabat including requesting to be paid in euros rather than U.S. dollars, a currency Iran wants to avoid using in business because of U.S. sanctions.