Arbitration in Iran-Turkey gasline dispute by Mid-January: Official

TEHRAN, Dec. 20 (Shana) – Director of international relations in the National Iranian Gas Company (NIGC) said the ruling by the International Court of Arbitration (ICA) affiliated to the International Chamber of Commerce wil be out by mid-January 2016 on the dispute between Turkey and Iran over the gas pipeline between the neighboring countries.

“The Turkish side, BOTAS Petroleum Pipeline Corporation, in January 2013 filed two lawsuits at ICA charging NIGC’s lack of reliability to transfer gas and reduction of gas price for commercial reasons,” Azizollah Ramezani told Shana.

On 10 November 2014, he added, ICA turned down the case against lack of reliability to pump gas and endorsed NIGC’s plea.

According to NIGC CEO, in the second case the Turkish firm has made the complaint that Iran’s gas is more expensive in comparison to other energies when considering global market, Russia’s price, and Turkey’s non-gas energy prices.

“Turkey has put forward all its reasoning in the court and NIGC, too, has tabled all of its defense 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 upto 10 bcm of gas annually for a 25-years period by pumping 30 mcm gas per day.

By SHANA