Iran to pay Turkey $1.9bn in compensation over gas price dispute

By bne IntelliNews January 24, 2017

Iran has agreed to pay $1.9bn in compensation to Turkey following last year's International Court of Arbitration gas price dispute ruling in favour of Ankara, Anadolu Agency reported on January 24 citing the semi-official Iranian Students' News Agency.

Only Russia supplies more natural gas to Turkey than Iran, which annually supplies its energy hungry neighbour with around 10bn cubic metres of gas.

Ankara took the price row with Iran to international arbitration in 2012. In February 2016, a tribunal ordered Iran to discount the price of the natural gas it exports to Turkey by 10-15%.

Ankara and Tehran have agreed on a 13.3% discount, Iran's Deputy Oil Minister Hamid Reza Araqi said.

Turkey’s heavy reliance on imported energy costs it billions of dollars each year. Thus it is constantly seeking to diversify its energy resources and explore alternative energy sources. Turkey is to build two nuclear plants and it is targeting an increase in the share of its renewable energy in terms of total installed power to 30% by 2023.

The country’s energy import bill declined by 30.2% y/y to $24.3bn in January-November last year, thanks to cheaper oil prices, which also fed through to create cheaper gas prices.

 

 

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

CEZ set to place Czech nuclear assets in new unit

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17. The move raises speculation that the company is ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss