Iran-Turkey Gas Price Dispute Ruling Out Next Month

Ruling by International Court of Arbitration (ICA) on the Iran-Turkey gas price dispute is expected to be out by mid-January, state owned Shana news agency reported Sunday.

Turkey laid a formal complaint against Iran with the International Court of Arbitration in regards to the price of gas in March 2012.

Iran is Turkey’s second bigger supplier of gas after Russia, providing for one-fifth of the country’s consumption.

Turkey claims Iran’s price is too high, charging $490 for every 1,000 cubic meters versus $335 and $425 by Azerbaijan and Russia respectively.

“Turkey has put forward all its reasoning in the court and NIGC, too, has tabled all of its defence so both parties have to wait for the arbitration,” Hamid-Reza Araqi said quoted by Shana.

Iran and Turkey in 1996 signed a contract valid for export of up to 10 bcm of gas annually for a 25-years period by pumping 30 mcm gas per day.