Hello. "South Pars" is the world's biggest natural gas field in reliance to reserves. It is being shared geographically by Katar and Iran. We will only concentrate on Iran as this is the thread subject: http://www.offshore-technology.com/projects/southpars/ Between Iran and Turkey is an arbitration procedure going on about natural gas related. Iran currently supllies 10 billion m³ a year to Turkey, or so Iran should. Iran's consumption of natural gas is 88 billion m³ and its production lies at 86 billion m³. So Turkey does not always get its contracted natural gas and Iran itself must import natural gas from Turkmenistan. Allthough Iran has 2nd biggest natural gas reserves in the world. In petroleum branch Iran lately went to rationing of gasoline and imports refined petroleum products for years now from Turkey, allthough Turkey itself does not have oil reserves but Turkey has biggest industrial refining capacities in the region. So Iran's energy sector is in a bad condition. http://www.forbes.com/markets/feeds/afx/2007/08/19/afx4033657.html Iran and Turkey are now for months in consultations and it is agreed to go into an full Energy-Partnership. Ranging from Refineries, electricity generation plants, Pipelines and explotation and marketing of Iranian ressources. Turkish state company TPAO will invest about 3,5 billion $ in this "South Pars" gas-field and will produce 20 billion m³ natural gas a year which accounts for about 60% of Turkish consumption of natural gas. This was announced between Turkey and Iran these days. Also Austrian company OMV will invest in this field. Some months ago there was some turmoil about this in USA where it was said that OMV could face sanctions if it goes on with its plans. Nevertheless OMV will invest with another Turkish company (Petrol Ofisi) in "south Pars" natural gas field. http://www.irantender.com/english/news/detail.asp?codeclass=453&id=30364 To overcome Iran's energy/electricity crisis, Turkey will also build 3 electricity production facilities fired with natural gas within Iran. These 3 facilities will add 6.000 MW of installed capacity to Iran's electricity production capability. This project will be financed by Iran and Turkey together and Turkish companies alone will build them. Currently Iran has an installed capacity of 40.000 MW. Turkish companies will also build Hydro-power plants in Iran with a total capacity of 10.000 MW. This investment will be financed and constructed by BOT-Model (Build Operate Transfer) from Turkish companies. Iran will not pay anything to this project. (All informations from Turkish MSNBC interview with Turkish Energy minister) http://www.ntvmsnbc.com/news/417736.asp In Turkey KW/h is produced at 5,4 cent. In Iran it is 3 cents. So Turkish companies will now invest in Iran in electricity sector. Till these natural gas and hydro plants are built, Turkey will transfer electricity to Iran when daily peak times of Turkish industry are over, as Iran and Turkey have different time zones. Iran will have 56.000 MW electricity capacity in near future from now 40.000 MW and its energy crisis will be overcome thanks to Turkey. As a reward Turkish Electricity companies will enter monopol Iran electricity sector and will generate huge income and Iran gives Turkish companies rights to develop huge Iranian gas fields. Turkey and Iran will set-up a natural gas marketing company with 49:51 share. This company will lay pipelines between Iran and Turkey and will market Iranian natural wealth to Europe, generating money for both Iran and Turkey by selling Iranian natural wealth. Peace in the region through economic cooperation. If you have some questions, i can answer you.