Iranian gas prices inconvenient for Turkey

Photo: Iranian gas prices inconvenient for Turkey / Oil&Gas

Baku, Azerbaijan, Feb.26

By Rufiz Hafizoglu - Trend:

The prices for gas proposed by Iran are not convenient for Turkey, Turkish Minister of Energy and Natural Resources Taner Yildiz said, Turkish TRT Haber TV channel reported on Feb.26.

Given the current tariffs, it is irrelevant for Turkey to increase the volume of gas imported from Iran, according to the minister.

"Iran proposes that Turkeydoubles the volume of the imported gas," Yildiz said.

The minister also pointed out that Iran's proposals on increasing the volume of gas supply are not fully-fledged.

Commenting on the situation relating to Turkey's suit made to the International Court of Arbitration against Iran on the issue of gas prices, Yildiz said that currently Turkey is waiting for the court's decision.

Ankara appealed to the International Court of Arbitration on the Iranian gas price in March 2012.

The agreement on the annual supply of 10 billion cubic meters of gas from Iran to Turkey was signed in 1996.

In 2013, the Turkish state pipeline company Botas imported 38.42 billion cubic meters of gas from various sources, as compared to 43.09 billion cubic meters in 2012.

Gas prices are not officially disclosed, but Turkey buys Iranian gas at $490 per 1000 cubic meters, according to Turkish media. Turkey pays $335 for one thousand cubic meters of Azerbaijani gas which is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline). The country pays $425 for 1000 cubic meters of Russian gas.

Turkey has a contract with Iran to supply 10 billion cubic meters of gas per year, with Russia it is 20 billion cubic meters of gas and with Azerbaijan - 6.6 billion cubic meters of gas.

Turkey also has an agreement with Algeria and Nigeria for the supply of 4.4 billion and 1.2 billion cubic meters of liquefied natural gas respectively per year.

Translated by L.Z.

Edited by S.M.

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