Yildiz: No further Delays Expected on Russian Gas Price Discount

Turkey expect no further delays in the 10.25% gas price discount agreement with Russia, Turkish Energy Minister Taner Yildiz said in a press conference in Ankara on Monday. Turkey and Russia agreed on gas price discount but both countries did not signed any agreement before Turkish Stream project. 

During an energy conference in Ankara, Yildiz said that the talks between Turkey and Russia, Iran, Azerbaijan may slow from time to time but gathers pace eventually, which may not cause a major problem. "This is not a suprise for us. Both Turkey and Russia already agreed on gas price discount agreement, the signing of necessary documents will be completed. We expect no further delays in signing the agreement," Yildiz said. Yildiz also said that Azeri gas flows to Turkey will be stopped from tomorrow due to maintenance. 

Last December, Russian gas giant OAO Gazprom shelved South Stream pipeline project, which was planned to deliver gas to southeastern Europe, after the European Union blocked construction on competition grounds. During a state visit, Russian President Vladimir Putin replaced this project with Turkish Stream, which will carry 63 BCM gas to flow to Turkey and onward to the European Union. The EU filed anti-monopoly charges against OAO Gazprom in April. 

The EU's import requirements are expected to rise further, since the gap between the production and consumption of natural gas continues to grow. The International Energy Agency forecasts that European gas production will fall by about 2% a year, while consumption will rise by 0.6% per year.