Tehran to cut gas price, raise export to Ankara

News ID: 2786786 -
TEHRAN, Jun. 24 (MNA) – Tehran and Ankara have reached an agreement to increase Turkey’s Iranian gas imports which in turn will reduce the price of Iran's gas.

Despite Ankara’s preliminary objection to Tehran’s condition on reducing gas prices, it seems that the other side has finally agreed to buy more natural gas from Iran, which will grant a certain reduction in gas prices accordingly.

In line with a 25-year contract signed by the two countries in 1996, Turkey imports about 10 billion cubic meters of gas per year from Iran. Ankara, however, has filed a case with the International Court of Arbitration on Iran's gas price, which Turkey deems to be too high.

Previously, Iranian Oil Minister Bijan Zangeneh had announced Turkey’s objection to Iran’s condition, saying “it was suggested that Iran would grant a certain amount of discount on gas prices on the condition that Turkey doubled its gas imports, but Turkey turned down the offer.”

However, Iran's Ambassador to Turkey Alireza Bigdeli told reporters in Ankara on Tuesday that the two countries have reached a preliminary agreement on this issue.

Bigdeli maintained that the agreement depicts a promising prospect for energy cooperation between the two neighbors.

Director of international affairs at National Iranian Gas Company (NIGC), Azizollah Ramezani, had said in May that Iran will win the second arbitration case filed by Turkey after the outcome of the first arbitration in the gas dispute was in Iran’s favor.

Iran is the second major supplier of natural gas to Turkey, after Russia, exporting about 30 percent of the country's needs.

According to Ramezani, Iran is one of the key scenarios for Turkey’s long-term plan for increasing natural gas imports.

 

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