The future of a critical energy artery between Iran and Turkey remains uncertain as a long-term natural gas supply agreement nears its expiration this summer, Turkish Energy Minister Alparslan Bayraktar said Saturday.

The contract, which governs the flow of up to 9.6 billion cubic meters (bcm) of Iranian gas annually to Turkey via pipeline, is scheduled to lapse in July. 

Despite the looming deadline, Bayraktar confirmed that formal negotiations for an extension have not yet commenced.

"According to our forecast, we might need this gas pipeline or the gas flow from Iran for the security of supply of Turkey," Bayraktar told reporters during a diplomacy forum in Antalya. 

"There is no negotiation right now ongoing... but we might sit and discuss a potential extension."

The pipeline has long been a pillar of Turkey’s energy infrastructure, though it has struggled to meet its maximum capacity in recent years. 

In 2023, Turkey imported 7.6 bcm from Iran, representing roughly 13% of the nation’s total gas imports. Regulatory data indicates the pipeline has not hit its full contracted volume since 2022.

The pause in talks comes amid heightened regional instability. Bayraktar noted that current geopolitical circumstances—specifically the ongoing conflict involving Iran—have influenced the timing of the discussions.

As Ankara weighs the extension of the Iranian deal, it is simultaneously moving to diversify its energy portfolio to ensure domestic stability. 

While Turkey already receives approximately 35% of its gas mix through the BlueStream and TurkStream pipelines from Russia, the government is exploring expanded liquefied natural gas (LNG) options.

Recent reports suggest state-owned pipeline operator BOTAS was granted a 10-year license for Russian LNG imports, a move typically reserved for countries with long-term supply agreements. 

However, Bayraktar clarified that Turkey has not yet begun importing LNG from Russia under this framework.

Turkey's strategy remains focused on balancing its historical reliance on pipeline gas from neighbors like Iran and Russia with a growing need for flexible, diversified supply chains.