Result of Turkey’s expensive gas complaint against Iran to be announced in six-months

Photo: Result of Turkey’s expensive gas complaint against Iran to be announced in six-months / Iran

Baku, Azerbaijan, July 22

By Umid Niayesh - Trend:

An Iranian official has announced that the international court of arbitration will announce the result of Turkey's suit against Iran on the price of supplied gas in the next six months.

Iranian Deputy Oil Minister Ali Majedi has announced that the two countries' negotiations over increasing Iran's gas supplies to Turkey might end in result prior to that date, meaning that Iran might increase its gas exports to Turkey before the court ruling is issued, Iran's Fars news agency reported on July 21.

Turkey applied to an international court of arbitration in 2012 for a ruling on Iran's gas pricing.

If the court rules in favor of Turkey, Iran will be obliged to provide Turkey a 30 percent discount on gas purchases. The case is still pending.

Earlier in March, Turkish media outlets quoted minister of energy and natural resources Taner Yildiz as saying the trial will last until late 2014.

Ankara has for the second time appealed to the court of arbitration that the gas supply to Turkey by Iran hasn't been carried out in accordance to the contracted volumes, according to the minister.

Yildiz also stressed that the International Court of Arbitration will separately consider this issue.

Turkey imports about 20 percent of its oil and gas needs from Iran. Ankara has previously requested for a discount on the price of gas it imports from Tehran. However, Iranian deputy oil minister Hamidreza Araqi on June 14 described the request as illogical.

Araqi went on to note that Iran has proposed to raise the volume of gas exports to Turkey up to 5 billion cubic meters per year in exchange for giving a discount.

"But the Turkish side neither accepts our preposition, nor agrees with the current price," he explained.

Iran is currently charging Turkey $490 for every 1,000 cubic meters of gas. While Ankara says it has to pay only $335 and $425 to Azerbaijan and Russia, respectively, to import the same amount of gas.

Edited by CN

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