NIGC Will Increase Turkmen Gas Imports

NIGC Will Increase Turkmen Gas Imports
NIGC Will Increase Turkmen Gas Imports

The volume of gas imports from Turkmenistan will increase over the next few weeks according to a long-term deal between the two countries, said the managing director of the National Iranian Gas Company (NIGC) Hamidreza Araghi.

Following Araghi's meeting with the managing director of Turkmengaz -the national gas company of Turkmenistan- Iran will increase gas imports from the neighboring country by 2 million cubic meters, reaching a total of 12 million cubic meters. "We will utilize different payment methods. Part of the money will be in cash and some sort of barter will be involved," Shana quoted him as saying.

  Turkey's Complaint

Turkey's state-owned Petroleum Pipeline Corporation (BOTAS) recently filed a complaint at an international court of arbitration claiming that Iran is selling its gas at a price higher than international market prices.  Araghi rejected the claim and said the complaint will be pursued in the court within the next two months.

Iran has presented solid evidence in defense, but there is a possibility that the court rules against Iran, he noted. The Oil Minister Bijan Namdar Zanganeh also denied Turkey's claim.

"The Turks have demanded a reduction in prices claiming that Iran has not fulfilled its commitments and they have called for a change in price formula," said Zanganeh. "Our lawyer has defended our position and presented evidence that proves we have not acted inappropriately."

The minister has further expressed readiness to increase gas exports to Turkey at a cheaper price, but the two countries first need to strike a new deal.

  Mini LPG Plants

Iran and Russia aim to establish a joint committee to explore areas of cooperation including the oil and gas industry.

Russia, India and the US are among the leading countries in the mini LNG sector and Iran has held talks with the Russians to establish mini LNG plants. Araghi insisted that the government will not take part in the construction of such plants and the operations will be carried out entirely by the private sector. Araghi also reassured that laying the Iran-Iraq pipeline is underway and gas exports to the Arab country will commence in the first quarter of 2015.