Tehran says winner of gas dispute with Ankara

Oil&Gas Materials 31 May 2015 15:34 (UTC +04:00)

Tehran, Iran, May 31

By Mehdi Sepahvand, Trend:

The first of two courts on Iran's gas export to Turkey has turned in favor of Iran, said Director of International Affairs of Iran's National Gas Company Azizollah Ramezani.

The time for the second court has not been announced yet, Ramezani said, Iran's Mehr news agency reported May 31.

"Whatever outcome that the second court brings, Iran will be the winner," he added.

One and a half years ago, Ankara sued Iran to The Hague for overcharging.

The Turkish company Botas had demanded Iran to lower the gas price by 32.5 percent, claiming Iran had overcharged Turkey and failed to provide ample gas in the cold season.

A 25-year take-or-pay contract between Iran and Turkey says Iran will provide Turkey with 10 billion cubic meters of gas per year.

But as Botas has failed to keep receiving the agreed amount of gas from Iran, it has to pay Iran $600 million. Instead of 10 billion cubic meters, Turkey had imported 6.8 billion cubic meters of gas last year.

Ramezani said that even in case Iran fails the second court, it will not be obliged to give Turkey discount.

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