Arbitration court to rule in Ankara-Tehran gas dispute next month
Baku, Azerbaijan, Dec. 20
By Fatih Karimov- Trend:
The International Court of Arbitration is still studying Turkey's suit against Iran on the price of supplied gas, an Iranian official said.
The result of Turkey's expensive gas complaint against Iran is expected to be announced next month, Azizollah Ramezani, director of international affairs at Iran's National Gas Company, said, the oil ministry's SHANA news agency reported Dec. 20.
Ankara appealed to the International Court of Arbitration regarding the price on Iranian gas in March 2012.
If the court rules in favor of Turkey, Iran will be obliged to provide Turkey a discount on gas purchases.
Ramezani earlier said the fact that global reductions of gas price have benefited Iran will make the court ruling fair and non-problematic.
In 1996, Iran and Turkey signed a 25-year deal on supplying 30 million cubic meters of gas to Turkey per day. Although the contract is still in place, it remains a sore point in the two countries' gas relationship. The two sides have held new talks on both price and volume of imported gas from Iran.
Turkey wants Iran to make a 25-percent discount for the gas. Iran in turn says that it can make a discount for Turkey if the latter imports more gas from the country.
Iran reportedly charges Turkey $490 for every 1,000 cubic meters of natural gas it exports to its neighbor. Turkey claims that the Republic of Azerbaijan and Russia supply gas to Turkey at $335 and $425 per 1,000 cubic meters, respectively.
Turkey has filed two complaints in the International Court of Arbitration accusing Iran of overcharging for its gas, while also complaining about its low quality and quantity, first of which have been announced in favor of Iran.
Iran is Turkey's second supplier of gas after Russia, providing for one-fifth of the country's consumption.