Iran Ready to Hike Gas Exports to Turkey, Won't Reduce Price

Iran has no plans to lower the price of its natural gas supplies to Turkey, said the Executive Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi, reports news agency Shana.

However, he said that Iran was prepared to increase the quantity of gas exports to Turkey as new phases of South Pars gas field begin to come online.

"Turkey claims that the price of supplied gas is too high and that Iran should lower the prices, however, Tehran has no plans to lower the price of its natural gas exports to Turkey under the current contracts," he said.

Iran is currently charging Turkey $490 for every 1,000 cubic meters of gas. Turkey is importing 10 billion cubic meters of gas a year from Iran and had said that would double its purchase of Iranian gas if the price was reduced.

In March 2012, Turkey filed a lawsuit against Iran at the International Court of Arbitration for charging high price for its natural gas.

Turkey has asked for lowered gas prices by Iran provided that the former allows Iran to reach European gas market through Turkish soil which would need fresh contracts with new provisions and price agreements, Shana quotes a senior Iranian gas official as saying.

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