Turkey, Iran to discuss gas prices again

Photo: Turkey, Iran to discuss gas prices again / Oil&Gas

Baku, Azerbaijan, June 10

By Rufiz Hafizoglu - Trend:

Turkey and Iran will again discuss the prices for the Iranian gas supplied to Turkey, Turkish TRT Haber TV channel quoted the country's Minister of Energy and Natural Resources, Taner Yildiz as saying on June 10.

He underscored that an Iranian delegation will visit Ankara, Turkey's capital next week, to discuss this issue.

The minister also stressed that Iran demanded Turkey call back its statement of claim from the International Court of Arbitration.

Yildiz went on to add that during the Iranian President Hassan Rouhani's visit to Turkey, the Iranian delegation proposed new terms under which the gas prices can be reduced, but these conditions are unfavorable for Ankara.

The agreement on supply of gas from Iran to Turkey was signed in 1996.

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

Gas prices are not officially disclosed, but Turkey buys Iranian gas at $490 per 1,000 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 1,000 cubic meters of Russian gas.

Turkey has contracts 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.

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

Yildiz earlier said that the trial at the International Court of Arbitration on Turkey's suit against Iran on the price of supplied gas will last until late 2014.

Edited by CN

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