Nov. 17 (Bloomberg) -- Iran and Turkey signed a memorandum of understanding that will allow natural gas from Iran and Turkmenistan to transit through Turkey to European markets, the Islamic Republic News Agency reported.

The accord covers the development of phases 22, 22 and 24 of Iran's South Pars gas field, permission for Turkmen and Iranian gas to travel through Turkey and construction of a 1,850-kilometer (1,150-mile) gas pipeline from Assalouyeh in southern Iran to the Turkish border.

The memorandum was signed by Iranian Oil Minister Gholamhossein Nozari and Turkish Energy Minister Hilmi Guler in Tehran today.

To contact the reporter on this story: Stephen Voss in London at sev@bloomberg.net

Last Updated: November 17, 2008 13:32 EST