Turkey, Iran to agree on 12-13 pct discount for natural gas

Published 13.07.2016 23:02 Modified 13.07.2016 23:02

After winning an international arbitration case against Iran, Turkey seems set to come to an agreement with Iran regarding a 12 percent to 13 percent discount in the purchase of natural gas.Ankara's friendship messages related to new policies to be followed with neighbors with the new administration are reflected in the natural gas sector as well.

According to the Habertürk daily, arbitrations concerning Iran and Russia have recently become the main discussion topics among energy authorities in Ankara. Turkey won the international arbitration case against Iran on the grounds of high natural gas prices. The arbitration committee decided on a 10 percent to 15 percent discount in the price. Turkey and Iran are said to have agreed on a 12 percent to 13 percent discount. The amount was submitted to the arbitration committee, which will issue its decision regarding the discount before September. Turkey imports 10 million cubic meters of natural gas from Iran annually.

In accordance with the natural gas trade agreement, Iran and Turkey will calculate the amount of natural gas purchased since 2012, the opening date of the arbitration case, along with the amount paid with the prices of that period. The amount of natural gas that Turkey has purchased since 2012 will be calculated at the new discount price. Iran will pay the difference to Turkey. While payment is expected in cash, an installment option is said to be on the table as well.

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