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Ankara, Tehran to Agree on Gas Price

Ankara, Tehran to  Agree on Gas Price Ankara, Tehran to  Agree on Gas Price

Ankara and Tehran will come to an agreement on the price of gas supplied to Turkey by Iran until the end of this year, Turkish Minister of Energy and Natural Resources Taner Yildiz said Sept. 11, Turkish TV channel TRT Haber reported.

“The parties have not come to a consensus about the gas prices up until now,” he said.

The minister stressed that Iranian gas costs Turkey more than Azerbaijani gas.

Previously, Yildiz said that Ankara and Tehran will discuss the price on Iran’s gas supplied to Turkey.

He also stressed that Iran urged Turkey to withdraw the writ from the International Court of Arbitration, which is unacceptable for Ankara.

Ankara appealed to the International Court of Arbitration regarding the price on Iranian gas in March 2012.

“During Iranian President Hassan Rouhani’s visit to Turkey, an Iranian delegation proposed to Ankara new conditions,” the minister said. “According to these conditions, the gas prices can be reduced, but these conditions are unfavorable for Ankara.”

Earlier Yildiz stressed that Turkey’s suit towards Iran concerning the prices on supplied gas will be considered at the International Court of Arbitration until the end of 2014.

The agreement on Iranian gas supply to Turkey was signed in 1996. Turkey has contracts with Iran for the supply of 10 billion cubic meters of gas per year, with Russia - 20 billion cubic meters of gas, Azerbaijan - 6.6 billion cubic meters of gas.

Gas prices are not officially disclosed. But according to the Turkish media, Turkey buys Iranian gas at $490 per 1,000 cubic meters. The country pays $ 335 per 1,000 cubic meters for Azerbaijani gas, which is supplied via the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum). Russian gas costs Turkey  $425 per 1,000 cubic meters.

Turkey signed agreements with Algeria and Nigeria for the supply of 4.4 billion and 1.2 billion cubic meters of liquefied natural gas per year, respectively, the Trend reported.

Meanwhile, Hamid Reza Araghi, Iran’s deputy oil minister, had expressed hope about normal trade relations with Turkey: “With the launch of the new gas phases in Asalouyeh Energy Zone next year, Iran can increase its gas exports to Turkey and the Turks should also withdraw their complaint against Iran while increasing their imports,” IRNA quoted Araghi as saying in August.

Financialtribune.com