Iran agrees to increase gas exports to Turkey
Tehran, Iran, Jan. 10
By Milad Fashtami - Trend:
Iran has agreed to increase its natural gas exports to Turkey.
As temperatures dropped in Turkey, Butas Company requested Iran to increase its gas exports to Ankara, Iran's Mehr News Agency reported on Jan. 10.
National Iranian Gas Company has exported an average of 30 million cubic meters of gas per day to Turkey in the past few days.
The Managing Director of National Iranian Gas Company Hamidreza Araqi said in September 2014 that the presidents of Iran and Turkey will decide about a possible increase in Tehran's gas exports to Ankara.
"If the two presidents agree on the deal, then the two countries' oil ministers will start technical negotiations," he explained.
"If Turkey requests to increase gas imports in the next 3 or 4 years, or the two countries agree to export Iranian gas to Europe via Turkey, Iran would provide the necessary capacities to increase gas exports to Ankara," Araqi said.
Araqi said on August 18 that Turkey has laid its second complaint against the price of gas the country imports from Iran, requesting for a 60-percent discount.
Turkey laid its first formal complaint against Iran in March 2012.
"Based on the signed contract between Tehran and Ankara, each country has the right to request for a revision five times," he said.
"In the first complaint, some 15 percent was reduced from the agreed price, and now the second request is being studied," he explained.
"The Turkish side's complaint is formed on two basis, price revision and price reduction," Araqi said, adding that Ankara has requested 25-30 percent reduction in each section.
Turkey imports about 20 percent of its oil and gas needs from Iran.
Ankara has repeatedly requested for a discount on the price of gas it imports from Tehran in the past years.
Araqi on June 14 dismissed the request as illogical.
He went on to note that Iran has proposed to raise the volume of gas exports to Turkey up to 5 billion cubic meters per year in exchange for giving a discount.
"But the Turkish side accepts neither the proposal to increase gas imports, nor the current price," he explained.
Iran is currently charging Turkey $490 for every 1,000 cubic meters of gas. It is while Ankara says it has to pay only $335 and $425 to Azerbaijan and Russia, respectively, to import the same amount of gas.