Iran Fined $1bn in Gas Row with Turkey
The International Court of Arbitration court has ruled against Iran in its gas dispute with Turkey, voting Iran should pay some $1bn in compensation for over-charging, said the managing director of the National Iranian Gas Company, Hamid-Reza Araqi.
Based on the ruling, Iran must reduce the price of gas it exported to Turkey between 2011 and 2015 by 10%-15%, Shana news agency quoted Araqi as saying on February 2.
Iran won the other cases Turkey brought against it, namely that its gas did not meet the specification and that it fell short on volume.
Iran must supply Turkey with a about 10bn m³/year under a 25-year deal signed in 1996. Last year, Iran exported 9.6bn m3 to Turkey.
Iran had proposed doubling exports of its natural gas for a discount in prices in last year, but Ankara rejected the offer. Last year Iran was its most costly gas supplier. According to unofficial figures, Turkey paid $490/'000 m³ for Iranian gas, $425/'000 m³ for Russian gas and $335/'000 m³ for Azeri gas in 2014.
Iran desk