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Iran rejects gas price drop but willing to export more to Turkey—SHANA - ASHARQ AL-AWSAT English Archive
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A worker walks on top of an oil tank at Turkey's Mediterranean port of Ceyhan, some 43.5 miles (70 kilometers) from Adana on February 19, 2014. (REUTERS/Umit Bektas)

A worker walks on top of an oil tank at Turkey’s Mediterranean port of Ceyhan, some 43.5 miles (70 kilometers) from Adana on February 19, 2014. (REUTERS/Umit Bektas)

Ankara, Reuters—Iran would not drop price of gas exports to Turkey but could sell more natural gas to its energy-hungry neighbor if a new agreement was signed between the two countries, the Iranian Oil Ministry’s website SHANA quoted a senior energy official as saying on Friday.

Turkey deems Iranian gas too expensive compared with other suppliers like Russia and Azerbaijan, an assertion rejected by Tehran.

Turkey’s state-owned Petroleum Pipeline Corporation (BOTAS) applied to an international court of arbitration in 2012 for a ruling on Iran’s gas pricing. The case is still pending.

“Iran will not decrease the price of natural gas it exports to Turkey under the current agreement,” SHANA quoted National Iranian Gas Co (NIGC) chief Hamidreza Araghi as saying.

Under a contract signed in 1996, Turkey imports 10 billion cubic meters per year of gas from Iran. The contract became active in 2001. Turkey depends on imports for almost all of its natural gas needs, estimated to hit 52 billion cubic meters this year.

Turkish Energy Minister Taner Yıldız told Reuters in an interview on January 30 that Turkey could double the amount of natural gas it imports from Iran if the two countries can agree on a price.

“We can increase the amount of Iran’s gas exports to Turkey under a new agreement,” Araghi said.

Turkey is keen to increase oil and gas imports from Tehran in anticipation of sanctions against Iran’s huge energy sector being dismantled in the wake of an interim nuclear deal last year between Tehran and six big powers aimed at curbing the country’s sensitive nuclear activities.

Under the November 24 accord, implemented since January 20, the Islamic Republic committed to scaling back some of its controversial nuclear activities.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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