13% cut in Iran’s natural gas price to Turkey: Minister

EghtesadOnline: Iranian Petroleum Minister Bijan Zangeneh said that Turkey wanted 62.5 percent discount on Iran's natural gas price but the International Court of Arbitration approved of only 13 percent.

News ID: ۷۷۶۵۹۰

28 May 2017

Talking to IRNA, Zangeneh said, “Turkey wanted a 37.5% price reduction and also 25% cut due to the quality on the exported gas from Iran to Turkey, that make 62.5%, but the International Court of Arbitration approved of 13% discount to reduce the price to the Russian natural gas export price.

Iran is the biggest natural gas exporter to Turkey and started the export in 2011.

Turkey had once before sued Iran for short-weight selling, but the court rejected that and exonerated Iran.

According to the international conventions, due to the fact that natural gas export contracts are long-term, there is always an article in the contracts that provides both sides with a chance for calling for price reconsideration.