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Erdogan, Rouhani to talk over increase of Iran's gas exports to Turkey

Business Materials 23 September 2014 16:10 (UTC +04:00)

Tehran, Iran, Sept. 23

By Milad Fashtami - Trend:

The presidents of Iran and Turkey, Hassan Rouhani and Recep Tayyip Erdogan will discuss possible increase in Tehran's gas exports to Ankara.

The Managing Director of National Iranian Gas Company Hamidreza Araqi said that if the two presidents agree on the deal, then the two countries' oil ministers will start technical negotiations, Iran's Fars News Agency reported on September 23.

"If Turkey requests to increase gas imports in the next 3 or 4 years, or the two countries agree to export Iranian gas to Europe via Turkey, Iran would provide the necessary capacities to increase gas exports to Ankara," Araqi said.

He went on to note that gas negotiations usually take a long time.

Araqi said on August 18 that Turkey has put up its second complaint against the price of gas the country imports from Iran, requesting for a 60-percent discount.

"Based on the signed contract between Tehran and Ankara, each country has the right to request for a revision five times," he said, Iran's Fars News Agency reported on August 18.

"In the first complaint, some 15 percent was reduced from the agreed price, and now the second request is being studied," he explained.

"The Turkish side's complaint is formed on the basis of price revision and price reduction," Araqi said, adding that Ankara has requested 25-30 percent reduction in each.

Ankara has repeatedly requested for a discount on the price of gas it imports from Tehran in the past years.

Araqi on June 14 dismissed the request as illogical. He said 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 the increase of exports, nor accepts the current price," he said. "Each country pursues its own interests in a contract."

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

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