The International Chamber of Commerce (ICC), which investigated the dispute between Iran and Turkey concerning price of Iranian gas delivered to Turkey, made a decison that Iran will have to pay Turkey a significant compensation, reported Iranian Tashim agency quoting Khamid Reza Araki, Managing Director of the National Iranian Gas Company (NIGC).
For several years Turkey, which buys about 10 bcm of gas from Iran, insisted that the price of $490 per 1000 cbm fixed in 1996 is too high and that the rate must be reduced by 35.5%.
Araki said that the arbitration has decree to reduce the İranian gas price stipulated by the contract by 10-15% and made İran to pay compensation for the gas delivered to Turkey since 2011. The sum of compensation is unknown yet, but Araki added that total amount could reach about $1 billion.
BGC Partners’ economists told Reuters that discount of Iranian gas will allow Turkey saving about $400 million a year.
Iranian Shana agency reported that according to the NIGC statement, hearing of the gas dispute between Iran and Turkey has been going on and the company is waiting for an official announcement of the decision of the arbitration. NIGC confirmed in its statement that it still considers price of gas exported to Turkey fair.
