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Official: Turkey should seal another deal with Iran if it seeks to boost gas imports

Oil&Gas Materials 8 March 2014 11:16 (UTC +04:00)

Baku, Azerbaijan, March 8

By Fatih Karimov - Trend:

Iran will not lower a gas export price for Turkey based on the existing contract, Iranian deputy oil minister, Hamid Reza Araqi said, the Shana News Agency reported on March 8.

He added that if Turkey wants to import more gas from Iran, it should seal another deal.

The agreement on supplies of 10 billion cubic meters of gas to Turkey on an annual basis was signed with Iran in 1996. The prices are not officially disclosed, but according to Turkish media outlets, Turkey buys Iranian gas for $490 per thousand cubic meters.

Commenting on Turkey's complaint to the International Court of Arbitration about the price of the gas Iran supplies to Turkey, Araqi said Iran will not accept any request from Turkey to lower the price.

In March 2012, Ankara appealed to International Arbitration over the high price of Iranian gas.

On Feb. 24, Araqi said Turkey's claim has not yet been proven in international arbitration.

"The time it takes to reach a verdict will depend on the court," he said. "It may be three to six months."

Commenting on Turkey's claims that Iran's gas delivery is unstable, Araqi said that currently billions of dollars have been invested for stretching the pipeline, pressure boosting installations, and other projects to ensure stable flow of gas to Turkey.

He underlined that Iran fully supplied Turkey with gas, despite the severe cold weather, arguing that Turkey's claims in the international court will not lead to any result.

"Iran is willing to lower the gas price supplied to Turkey, upon condition that it will increase the volume of imported gas from Iran," Iranian Oil Minister Bijan Namdar Zanganeh said on Feb. 22.

Earlier in February, Turkish media outlets quoted Energy and Natural Resources Minister Taner Yıldız as saying that Turkey is expected to get more than $2 billion from its lawsuit against Iran.

Turkey imported 7.5 billion cubic meters of gas from Iran in 2012, according to BP statistics.

Earlier Yildiz said that Turkey imported gas from Iran worth $4.5 billion in 2013.

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