Iran denies any agreement to sell gas at discount price to Turkey
Baku, Azerbaijan, July 13
By Fatih Karimov - Trend: Iran has not made any agreement with the Turkish state-owned company Botas to provide the company with natural gas at a discount price, said Azizollah Ramezani, the international affairs director of National Iranian Gas Company (NIGC).
He rejected some media reports about an agreement between NIGC and Botas to sell the Turkish company gas at a discount price, the NIGC reported July 13.
"Last year, we negotiated with Botas to boost the volume of gas which is delivered to it within a framework of a new deal," Ramezani said.
"But, no offer has been made so far for reducing the gas price within the framework of the existing contract with Botas."
Gas is sold to Botas at a reasonable and fair price, he said, adding that there is no need for revising the gas price in order to reduce it.
Iranian Ambassador to Turkey Ali Reza Bigdeli said on June 25 that Turkey would purchase more natural gas from Iran, which will grant a certain reduction in gas prices accordingly.
He added that a new agreement is needed so that Turkey can receive a discount from Iran for natural gas.
"The formula has been accepted by us," said the ambassador.
Meanwhile, Ankara appealed to the International Court of Arbitration in March 2012 regarding the price on the gas supplied from Iran. After that, Iran demanded that Turkey withdraw the lawsuit from the International Court of Arbitration. Gas prices are not officially disclosed, but, according to the Turkish media, Turkey buys Iranian gas at $490 per 1,000 cubic meters. The agreement on supply of Iranian gas to Turkey was signed in 1996. Turkey has contracts with Iran for the supply of 10 billion cubic meters of gas per year.
Deputy general manager of Botas, Nedim Ozyol, said on June 3 that the Court of Arbitration is considering a lawsuit of Ankara to Tehran to grant discounts on the Iranian gas supplied to Turkey. Ankara is waiting for the decision of the Court of Arbitration, and it is too early to say which side the Court will support in this matter.
Edited by CN