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Azerbaijani gas is much cheaper than Russian gas for Turkey - minister

Oil&Gas Materials 18 March 2015 15:32 (UTC +04:00)
Azerbaijani gas is much cheaper for Turkey as opposed to the Russian gas, Bigpara newspaper reported March 18 referring to Turkish Minister of Energy and Natural Resources Taner Yildiz.
Azerbaijani gas is much cheaper than Russian gas for Turkey - minister

Baku, Azerbaijan, Mar. 18
By Rufiz Hafizoglu - Trend:

Azerbaijani gas is much cheaper for Turkey as opposed to the Russian gas, Bigpara newspaper reported March 18 referring to Turkish Minister of Energy and Natural Resources Taner Yildiz.

Russia is the main supplier of natural gas to Turkey. Some 26.7 billion cubic meters of Russian gas were supplied to Turkey in 2014. It is planned to increase the gas supply volume from Russia to Turkey up to 30 billion cubic meters in 2015.

The gas prices are not officially disclosed.

Turkey buys Iranian gas at $490 per 1,000 cubic meters. Turkey pays $335 for 1,000 cubic meters of Azerbaijani gas that is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline). The country pays $425 for 1,000 cubic meters of Russian gas, the Turkish media reported.

Turkey has the contracts with Russia to supply 20 billion cubic meters of gas per year, with Iran - 10 billion cubic meters, with Azerbaijan - 6.6 billion cubic meters.

Turkish company Botas declined to sign an agreement with Russia's Gazprom on a 10.25 percent discount on the Russian gas supplied to Turkey. The refusal to sign the agreement came after the discount rate proposed by Russia didn't suit Turkey.

Turkey is expected to appeal to the arbitration court with regard to the discount for the supplied Russian gas.

On Feb. 27, Turkish Energy and Natural Resources Minister Taner Yildiz said Moscow and Ankara agreed on a 10.25-percent discount on the Russian gas supplied to Turkey.

Yildiz said in 2014 that Turkey intended to get a 15 percent discount for the gas supplied to the country from Russia by late 2014. Moreover, Yildiz said on December 3, 2014 that Turkey continues the dialogue with Russia on reducing the prices for Russian gas.

He said that the gas price offered by the Russian side to Turkey is not the final price and expressed hope that the sides will discuss the prices for gas soon.

Previously, Turkish Prime Minister Ahmet Davutoglu said Turkey urges Russia to increase its discount for gas supplied to the country.

As Davutoglu noted, after Russian President Vladimir Putin said Turkey would get a 6 percent discount for Russian gas to be supplied to the country from January 2015, Turkey urged to increase this discount.

He said Ankara hopes that Russia, taking into account Turkey's needs for natural gas, will make an additional discount.

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