Thursday 9 April 2015 - 10:43
Story Code : 159162
Iran unlikely to give Turkey gas discount in near future - Experts
MOSCOW (Sputnik) On Tuesday, Turkish President Recep Tayyip Erdogan said, duringhis visit toTehran, that Turkey was ready toincrease its import ofIranian gas if the price was acceptable."Iran has not made any concessions upto this day and is showing now that this policy will not be changed. I do not think that Iran will reduce natural gas prices inthe short term. But if a new agreement is signed, then the Iranian government could offer a new price," Omid Shokri Kalehsar, an energy analyst atthe Yalova University, said.
The energy pundit added that Turkey was buying "its most expensive gas fromIran for $480 [per 1,000 cubic meters]." Russia and Azerbaijan are the other two major suppliers ofgas toTurkey.
In February 2015, Ankara lodged a suit withthe International Court ofArbitration, asking fora 25-percent decrease inprice forIranian gas. But experts say it will take time forIran toreduce the prices.
"As ofnow Iran cannot afford toincrease production ofnatural gas withina short space oftime tosupply the volumes that Turkey wants toreceive. Iran will need atleast three tofive years. That is why I do not think that Tehran will be able tooffer any considerable discount," Tugche Varol Sevim, energy security researcher atthe 21. Century Turkey Institute, said.
The expert added that, withinternational sanctions still inplace, Iran relies heavily onthe revenues fromoil and gas exports.
Last week, the United States and the United Nations promised tolift energy-related sanctions imposed onIran afterthe International Atomic Energy Agency monitors verify that Tehran follows throughthe agreements reached inLausanne last week.
Tehran agreed tocut back its uranium enrichment program and reduce the number ofcentrifuges inthe country aspart ofthe framework deal withthe P5+1 countries.
The P5+1 group includes the United States, France, the United Kingdom, Russia, China and Germany.
By Sputnik News
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