Iran, Turkey Agree on a New Gas Formula

Iran has in principle agreed to supply more gas to Turkey and make certain amount of discount on the price.

“Turkey will buy more natural gas from Iran. In return, Iran will make a certain amount of discount. We have accepted this formula. However, for this to be realized, a new gas deal has to be made between the two countries,” Iranian Ambassador to Turkey Alireza Bikdeli Monday, reported Anadolu Agency.

Speaking to members of the Economy Journalists Association in Ankara, Bikdeli discussed possible solutions to the natural gas price dispute between Turkey and Iran.

Tehran charges about $490 for every 1,000 cubic meters of natural gas it exports to Turkey, which claims that the Azerbaijan and Russia supply gas at $335-340 and about $425 per 1,000 cubic meters, respectively.

As per the deal in existence, Turkey has been buying 10 billion cubic meters of natural gas from Iran per year since 2001.

Turkey has repeatedly objected to the high cost of Iranian gas and demanded a discount by taking the case to the International Court of Arbitration (ICA).