Turkish Energy and Natural Resources Minister Taner Yildiz arrived Saturday in Iran on an official visit.
Yildiz met with Minister of Petroleum Masud Mir-kazemi. The two chaired a meeting between the delegations of the two countries.
Minister Yildiz is also expected to meet with First Vice President Mohammad Reza Rahimi, Minister of Energy Majid Namju and Acting Foreign Minister, Ali Akbar Salehi.
Turkey's energy minister on Friday said the country would not make any penalty payments to Iran this year for the Iranian natural gas Ankara pledged to buy but failed to do so.
"We will not be paying Iran anything this year under take-or-pay deal for natural gas. However, such payment will be made to Russia by large," Taner Yildiz told reporters in a press conference in Ankara.
Take-or-pay contract is common in energy sector and Turkey's gas contracts with Iran and Russia -- two of the country's biggest natural gas suppliers -- also includes such conditions.
Turkey paid Iran 704 million USD for natural gas it failed to use from the country in 2008. A similar situation applies to the Russian gas as well. Turkey has to buy at least 75 percent of the gas it pledged to buy from Russia annually.
Yildiz is expected to return to Turkey in the evening.