ANKARA – While Turkey and Iran still continue bilateral talks, the state-owned Turkish Pipeline Corporation (BOTAŞ), is reportedly looking for a discount of 32.5 percent from Iran. The bilateral talks on the discount are still going on, and details about the "Turang project," which targets transferring Iranian natural gas to Europe, have been released. Iran has signed gas supply agreements with three European countries, while the sanctions have been in force. The United Nations has imposed wide-ranging sanctions against Iran for its nuclear program. Many international experts believe the program aims at developing nuclear weapons, while Iran argues that it has civilian objectives.

Concerning recent allegations that the Turang Project is due to Iranian pressure and against Turkey's interests, Minister of Energy and Natural Resources Taner Yıldız said: "The Turang project is a private sector project. It is not an exclusive concession. Other companies can also benefit from the Turang project. The people, who said Turkey's approach only considers Iran's interests, cannot explain TANAP (Trans-Anatolian gas pipeline), the petroleum cooperation with Northern Iraq."

The total length of the pipeline in the Turang project is planned to be about 5,000 kilometers, and the length of the pipeline within the borders of Turkey will be about 1,750 kilometers.

Natural gas will be conveyed from Iran to Germany through Turkey, Greece and Italy. The project is expected to convey 35 billion cubic meters of natural gas per annum. Within the scope of the Turang project, procurement sources will be Germany, Italy, Switzerland and Austria.

In return for transferring Iran's natural gas through its borders, a precondition is that Turkey will benefit from the natural gas conveyed from Turkmenistan to Iran. Turkey also plans to receive transition fees and convey Turkmenistan's lowpriced natural gas.

Concerning criticism about Turkey conveying Iranian natural gas, the Ministry of Energy and Natural Resources stated that Germany, Switzerland and Italy reached agreement with Iran last year when the sanctions were in force. According to the statement, "This project is the result of Turkey's natural gas demand."

Considering allegations that this agreement is against Turkey's interests and due to pressure from the Iranian lobby, it has been reported: "The Turang project is a private sector project aiming to convey Iran's natural gas to Europe through Turkey. Giving consent to the pipeline construction, the resolution of the Cabinet of Turkey points out that this is not 'an exclusively vested right'. If three European countries purchase the natural gas, then we give consent to the most profitable project."

Underlining that the Turang project is not a public sector project, Minister Yıldız gave a statement to Sabah newspaper:

"The Turang Project is a private sector project. There are no exclusive concessions. Any company that would like to convey the natural gas can apply. We have similar attitudes to the agreements with the EU countries, Azerbaijan and Turkmenistan.The people who said Turkey only considers Iran's interests cannot explain TANAP or the other future projects in Northern Iraq."

Turkey signed a 25-year Natural Gas Purchase-Sell Agreement with Iran on Aug. 8, 1996, to convey 10 billion cubic meters of natural gas per annum. Turkey has been purchasing natural gas from Iran since Dec. 10, 2001. Within the scope of this agreement, 65.9 billion cubic meters of natural gas have been imported. In 2003, BOTAŞ received a discount in an arbitration case against the National Iranian Gas Co (NIGC) in the International Chamber of Commerce. In this respect, nearly $971 billion have been allocated from the NIGC.

Another arbitration case started in 2012 due to the fact that Iran did not give any discount. Therefore, BOTAŞ used its contractual rights because of the high price and missing deliveries. While the arbitration case of Turkey has been proceeding, it is reported that Iran has requested a discount for 32.5 percent. Following the proceedings last week, the petitions of parties will be submitted on April 10, 2014, to the arbitration tribunal. The final resolution on price revision will be determined on June 10 after review by expert consultants.