Iran accepts 13% gas price discount for Turkey
Baku, Azerbaijan, Nov. 9
By Fatih Karimov – Trend
Iran is negotiating with Turkey about implementing a 13 percent discount in gas price, Bijan Namdar Zanganeh, Iran’s oil minister, said.
Based on the final verdict of the International Court of Arbitration, Iran should give a 12-13 percent decrease in gas price for Turkey, Zanganeh said, Mehr news agency reported Nov. 9.
“We are negotiating with Turkish side to reach an agreement about the procedure and schedule of implementing the discount,” Zanganeh said.
He further said that Turkey was seeking to gain a 50 percent discount and submitted its request to Iran in this regard, however the Islamic Republic rejected the preposition.
In 1996, Iran and Turkey signed a 25-year deal on supplying 30 million cubic meters of gas to Turkey per day. Ankara appealed to the International Court of Arbitration regarding the price on Iranian gas in March 2012.
Although the contract is still in place, it remains a sore point in the two countries' economic relations. Turkey wanted a 25-percent discount from Iran for the supplied gas, while Iran said it would agree to the discount if Turkey increases the amount of imported gas.
Iran is considered a major gas supplier to Turkey as the Islamic Republic annually delivers about 10 billion cubic meters of gas there.