Tehran (AsiaNews) – Iranian President Ahmadinejad has started a two-day visit in Turkmenistan ostensibly in search of trade deals involving gas supplies and petroleum by-products but also discussions over the Caspian Sea and Iran's greater political role in Central Asia.

According to Iran's state agency IRNA, the two countries reached an agreement to increase Turkmenistan's gas exports to Iran from the current eight billion cubic metres to a minimum of 14 billion cubic metres annually by next year. The two sides also plan to increase the swap of Turkmenistan oil via Iran's northern ports which currently stands at 40,000 barrels daily.

President-for-Life Saparmurat Niyazov has proposed greater participation of Iranian companies in oil exploration in Turkmenistan because of their great experience in the field.

Both countries are in favour of greater trade in oil by-products. Iran, which is the second biggest buyer of Turkmen natural gas, electricity, liquefied gas and polypropylene after Russia, wants to buy more gas from Turkmenistan. It plans to buy more than 13 billion cubic metres of gas from Turkmenistan, up from 5.8 billion in 2005. Two-way trade amounted to US$ 1 billion in 2005.

The visit by the Iranian president, who is accompanied by his ministers of foreign affairs, commerce, energy and oil, is taking place as an Iranian trade show opens in the Turkmen capital of Ashkhabad and the Bajgiran-Hooman border terminal is inaugurated.

"Iran-Turkmenistan relations are advantageous for the security in the region," Ahmadinejad said. "Our brotherly relations are always progressing," he added.

Whilst economic in focus Ahmedinejad's presence in Turkmenistan also reflects Iran's desire to play a greater regional role. For some analysts, this objective is behind Iran's controversial nuclear programme.

An arid country, Turkmenistan has a surface that exceeds 480,000 Km2 and a population of about five million (85 per cent Muslim, 10 per cent Orthodox). It is strategically important for its oil production and its geographic location, between the Caspian Sea and Afghanistan, wetting the appetite of Russians, Americans and Chinese.