NIGC says can supply gas needed for northern regions

EghtesadOnline: The National Iranian Gas Company in a statement released on Sunday evening said that the gas needed for the northern parts of the country will be supplied by domestic resources.

News ID: ۷۷۲۸۴۸

02 January 2017

The NIGC has done enough preparations to supply gas needed for the northern and northeastern parts of the country, the statement added.

According to IRNA, the National Iranian Gas Company said in the statement that according to an agreement with Turkmen National Oil and Gas Company inked 20 years ago, parts of gas consumed in northern parts of the country was supplied through import of gas from Turkemenistan.

The Turkmen National Oil and Gas Company, sometimes had behavior inconsistent with the contract principles and good neighborliness, the statement added.

It noted that the Turkmen National Oil and Gas Company cut flow of gas to Iran in severe cold winter of Iranian year of 1386 (2008) in a bid to increase gas price.

Unfortunately, Iran accepted the Turkmen National Oil and Gas Company's illogical demand for a new 9 fold gas price, the statement said.

It added that the Turkmen National Oil and Gas Company has cut the gas flow again to take the disputed price it claims.

Iran would insist on its right position, the statement said, referring to recent talks with Turkmen officials.

The amount of Iran's gas production has increased due to efforts of oil industry staff in the past three years and it does not need import of gas, the National Iranian Gas Company noted.

Turkmenistan stopped gas exports to Iran early on Sunday, according to an informed official with Iran's Petroleum Ministry.

A day earlier, Deputy Petroleum Minister and Managing Director of National Iranian Gas Company (NIGC) Hamid-Reza Araqi said Iranian contract with Turkmen Gas is in place for the next five years.

Explaining outcome of his 3-day visit to Turkmenistan and negotiations with Turkmenistan Vice-President, Energy Minister, Foreign Minister and Managing Director of Turkmen Gas Company, Araqi said that a Memorandum of Understanding (MoU) on gas import to Iran, swap and drawing up strategy for cooperation of the two companies were the topics of negotiations.

The two parties agreed to set up a joint committee to review cases of differences in the next two months for settlement, Araqi said.