Iran seeks Pakistan’s arbitration in gas dispute with Turkey

Iran Materials 18 January 2012 12:32 (UTC +04:00)

Azerbaijan, Baku, Jan. 18 / Trend F.Milad/

The National Iranian Gas Company's managing director Javad Oji has said Tehran seeks Pakistan's arbitration to resolve the dispute over the price paid for gas exports from Iran to neighbouring Turkey.

In 1996, Iran and Turkey signed an agreement to supply 10 billion cubic metres of gas to Turkey annually (30 million cubic metres per day). In 2011, the export of Iranian gas to Turkey increased by 12 per cent compared to 2010. The figure mow hits 24 million cubic metres of gas per day.

Turkey's Energy Minister said Iran has rejected Ankara's demand for cheaper natural gas, adding that going to an international arbitration court over the issue seems inevitable, Press TV reported.

Turkey expects to enter arbitration over the price paid for gas imports from neighbouring Iran, Energy Minister Taner Yildiz said on Monday, after Tehran rejected Ankara's complaint that the price is 'too high'.

Mr Yildiz noted that "we have close cooperation with Iran and are developing joint projects, but we voiced our discomfort to the Iranian officials over the price of the natural gas we import and told them that the prices are high.

"They did not share the same view as us. We respect their view, but we not reach an agreement, so an international arbitration court seems inevitable."

On October 12, 2011, Mr Oji said Turkey has requested Iran increases its natural gas exports to its north western neighbour amid a Russia-Turkey row over the price of gas.

He added that Iran's gas exports to Turkey are 24 million cubic metres per day on average and expressed Tehran's readiness to provide Ankara with further natural gas. The official added that Iran has a capacity to export a daily average of 36-40 million cubic metres of natural gas to Turkey.