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Iran to increase gas exports to Turkey if legal dispute settled

Iran Materials 8 March 2014 21:18 (UTC +04:00)
An unnamed Iranian official told the country's Fars News Agency on March 7 that Tehran will be ready to increase its gas exports to Ankara in case Turkey comes to an agreement with Iran over their legal dispute.
Iran to increase gas exports to Turkey if legal dispute settled

Baku, Azerbaijan, March 7

By Rahim Zamanov - Trend:

An unnamed Iranian official told the country's Fars News Agency on March 7 that Tehran will be ready to increase its gas exports to Ankara in case Turkey comes to an agreement with Iran over their legal dispute.

"Iran will boost is gas output next year. The country can consume the increased amount domestically or export it," the source said, adding that Iran prefers to export the gas and Turkey will be a good option.

"Based on the previous agreements, Iran will be able to export its gas to Europe via Turkey," he added.

Iran's Deputy Oil Minister for International Affairs, Ali Majedi, said on Feb. 26 that Iran will able to increase gas exports to neighboring Turkey in the next three years, Iran's IRNA News Agency reported.

"If Turkey increases gas imports from Iran, then Tehran can think about giving a discount to Ankara," Majedi added.

Referring to Turkey's formal complaint against Iran in regards to high price of gas, Majedi said that, "An international court is currently studying the case. The final verdict will be announced in a few months."

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

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

On Feb. 16, Iranian Oil Minister Bijan Namdar Zanganeh said that Iran is studying Turkey's request to double its natural gas imports from the Islamic Republic, Press TV reported.

Zanganeh stated that Turkey has expressed interest in increasing its gas purchases from Iran to 20 billion cubic meters a year.

However, the oil minister said Iran has not yet made a decision on Turkey's request for a reduction in the price of gas. Iran is currently charging Turkey $490 for every 1,000 cubic meters of gas.

In 1996, the two countries signed an agreement, according to which Iran would supply 10 billion cubic meters of gas annually to Turkey.

Under the agreement, Iran should export about 27.3 million cubic meters of gas per day to its northwestern neighbor.

In October 2013, Turkish Energy Minister Taner Yildiz said that Turkey is importing 10 billion cubic meters of gas a year from Iran but would buy more if it were available.

Turkey will also import at least 5 million tons (100,000 barrels per day) of Iranian crude in 2014, the same amount that it purchased last year, since any more cuts in the volume from Iran would "threaten" the country's economy, Hurriyet Daily News quoted Yildiz as saying.

"Now we are importing about 5 million tons, and if we [reduce] that, then that would threaten our energy supply security," he added.

Edited by C.N.

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