Vote on Turkey’s Gas Complaint Against Iran to be Announced by January 20

The International Court of Arbitration is studying Turkey’s gas complaint against Iran and will announce its decision by January 20, said Azizollah Ramezani, the director for international affairs of the National Iranian Gas Company.

In January 2012, Turkey filed two complaints in the International Court of Arbitration accusing Iran of overcharging for its gas, while also complaining of its low quality and quantity. 

On November 10, 2014, the international court dismissed Turkey’s claim against Iran. 

Iran must supply Turkey with a maximum 10 billion cubic meters of natural gas a year under a 25-year deal signed in 1996.

Iran has proposed doubling exports of its natural gas for a discount in prices, but Ankara has rejected the offer.

Sources from the Turkish Energy Ministry stated that Iran declined to make any cuts in the price of gas exports, but it offered to open a new gas supply line of around 10 bcm at a cheaper price, which Ankara deemed “unacceptable.” 

Turkey continues to buy from Iran its most costly gas, compared to its other biggest suppliers, Russia and Azerbaijan. 

According to unofficial figures, Turkey pays $490 for 1,000 cubic meters of Iranian gas, $425 for Russian gas and $335 for Azeri gas.