Ankara says Azerbaijani gas cheaper than Russian
Azerbaijani gas is much cheaper for Turkey as opposed to the Russian gas, Bigpara newspaper reported on March 18 referring to Turkish Minister of Energy and Natural Resources Taner Yildiz.
Russia is the main supplier of natural gas to Turkey. Some 26.7 billion cubic meters of Russian gas were supplied to Turkey in 2014. It is planned to increase the gas supply volume from Russia to Turkey up to 30 billion cubic meters in 2015.
The gas prices are not officially disclosed.
Turkey buys Iranian gas at $490 per 1,000 cubic meters. Turkey pays $335 for 1,000 cubic meters of Azerbaijani gas that is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline). The country pays $425 for 1,000 cubic meters of Russian gas, the Turkish media reported.
Turkey has the contracts with Russia to supply 20 billion cubic meters of gas per year, with Iran - 10 billion cubic meters, with Azerbaijan - 6.6 billion cubic meters.
Turkish company Botas declined to sign an agreement with Russia’s Gazprom on a 10.25 percent discount on the Russian gas supplied to Turkey. The refusal to sign the agreement came after the discount rate proposed by Russia didn’t suit Turkey.
Turkey is expected to appeal to the arbitration court with regard to the discount for the supplied Russian gas.
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