Iran said on Monday that it had signed a basic agreement with several Turkish companies to build a power plant in Turkey.

Alireza Kameli, the managing director of the National Iranian Gas Export Company (NIGEC), said the agreement envisages the construction of a power plant in Turkey through the joint investment of NIGEC and the National Iranian Oil Company (NIOC) – on behalf of the Ministry of Petroleum – with the Turkish companies.

“One way to diversify Iran’s gas exports in to turn it into electricity,” Kameli was quoted by the Persian-language newspaper Forsat-e Emrooz as saying. “That is why Iran’s Ministry of Petroleum has decided to proceed with this project.”

He further added that an Iranian company named Ariyan Mahtab Gostar will determine the location of the power plant inside Turkey. Afterwards, the official added, the National Iranian Gas Company (NIGC) will start procedures to construct a pipeline from Iran to the designated location of the plant.

“Following talks with the Turkish companies, it has been agreed for Iran to supply the required gas of the project, he said adding that the investor’s share of gas export revenue is calculated in proportion to gas price in each target market.

Kameli further added that Iran expects the efficiency of the power plant to be above 50% so that it would be able to compete with international rivals. This, he said, is while the efficiency of power plants in Iran is maximum 37%.

NIGEC is a subsidiary of NIGC and is in charge of Iran’s gas export projects. NIGC and NIOC – which is in charge of oil issues – are both under the auspices of Iran’s Ministry of Petroleum.

Source: Press TV