Iran Wins Region’s Trust With Sustainable Gas Exports

Iran Wins Region’s Trust  With Sustainable Gas ExportsIran Wins Region’s Trust  With Sustainable Gas Exports

Iran has disproved Turkey’s allegations regarding problems in Tehran’s gas supply to its northwestern neighbor, director the National Iranian Gas Company said Tuesday.

Hamidreza Araqi said that Iran’s sustainable gas supply to Turkey in winter proved wrong Ankara’s complaint about instability in Iran’s gas delivery.        

"Turkey filed a complaint against NIGC based on allegations that the company cannot be a sustainable gas supplier. But this company has managed to honor its obligations without any restrictions," Araqi said. He added that Iran supplied at least 30 million cubic meters of gas per day to Turkey during winter.

“By doing so, the NIGC has managed to convince the court that such a problem does not exist and this case has won Iran’s gas industry international trust,” he added, asserting that neighbors see Iran as a reliable gas supplier.

Regarding the price differences for importing countries, Araqi stated, “Gas prices vary in NIGC export contracts; the contracts signed with Iraq, Pakistan, Turkmenistan, and Turkey differ as the pricing formula is different for each case."

There are numerous factors affecting the price difference. This was the basis of Turkey’s claim against Iran, maintaining that the price of Iranian gas was higher than that of Russia and Azerbaijan from wherefrom Turkey also imports gas.

In 2012, Turkey’s BOTAS went to an international court of arbitration for a ruling on gas pricing as well as supplied volume. “We strongly defended the case,” Araqi said, noting that Iran was acquitted on Turkey’s price reduction claim.

In its first decision on Iran-Turkey gas dispute, the International Court of Arbitration also ruled against Turkey’s complaint that Iran deliver insufficient amount of gas to its western neighbor. However, decision on pricing formula is still pending.

Iran exports 10 billion cubic meters of gas to Turkey every year. The revenues thereof have been estimated at $4-5 billion, according to Araqi.

Turkey receives more than 90 percent of Iran’s gas exports under a long-term contract. Iran holds the world's largest proven natural gas reserves, according to a 2014 assessment by the British Petroleum.