Iran will not reduce gas prices for Turkey

Photo: Iran will not reduce gas prices for Turkey / Iran

Baku, Azerbaijan, Feb. 24

By Umid Niayesh - Trend:

Turkey's request for a discount on gas price is not acceptable, Iranian deputy oil minister, Hamid Reza Araqi said, Mehr news agency reported on Feb. 24.

Commenting on the latest situation of Turkey's complaint against Iran on the exported gas price, Araqi said that the lawsuit will not lead anywhere. He also went on to say that Iran will accept the decision of the international arbiter on the issue.

Turkey has made the demands according to the 1996 agreement, adding that if it doesn't lead anywhere, they will be going to the International Criminal Court (ICC) or World Trade Organization.

Turkey's claim has not yet been proven in international arbitration, Araqi added.

He also underlined that the time it takes to reach a verdict will depend on the court, saying that 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.

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

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.

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

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.

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

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

Edited by C.N.

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