Final Ruling on Iran, Turkey Gas Price Dispute Expected by Summer

Final ruling on Iran-Turkey gas price dispute is expected in a few months, a senior Iranian gas official said.

Azizollah Ramezani, director of international affairs at National Iranian Gas Company (NIGC), told petroleum ministry’s news agency Shana that the final ruling on the case is not issued yet but will be out by summer. 

Turkey has sued Iran to the International Court of Arbitration (ICA) claiming Tehran has been overcharging for the gas it exports. Turkey laid a formal complaint against Iran in regards to the price of gas in March 2012.

Iran is Turkey’s second bigger supplier of gas after Russia, providing for one-fifth of the country’s consumption. Iran and Turkey in 1996 signed a contract valid for export of up to 10 bcm of gas annually for a 25-years period by pumping 30 mcm gas per day.

Turkey says that Iranian gas is far more expensive vis-à-vis the gas it imports from Russia.