Ankara says Azerbaijan will concede on gas price
Azerbaijan will sell gas to Turkey for prices below
world market levels, Turkish Energy and Natural Resources Minister
Taner Yildiz was quoted by local Milliyet newspaper as saying.
Yildiz told a parliamentary commission meeting that talks on the issue are underway with Azerbaijan, saying the South Caucasus republic will concede on the price of fuel.
Under the 2001 agreement, the price of Azerbaijani gas sold to Turkey is $120 per 1,000 cubic meters -- considerably lower than those in world markets. Supplies to the neighboring country began in 2007.
"We have purchased gas from Azerbaijan for a cheap price for only ten months," the Turkish minister said.
According to him, Turkey owes $600 million to $900 million for the difference in the price of gas supplied since April 2008.
Under the gas supply contract, the price is to be reconsidered a year after the start of gas deliveries, i.e. the new price is to be effective since April 15, 2008.
Yildiz said Azerbaijan’s charging the price complying with world market levels would be inappropriate, because Ankara imported Azerbaijani gas for even higher prices in the past.
"Through the hard times, we have stood by our Azeri brethren, so, now, they are paying us back. They say, let’s supply gas not for world prices, but a little cheaper. They need us and we need them," Yildiz said.*
Yildiz told a parliamentary commission meeting that talks on the issue are underway with Azerbaijan, saying the South Caucasus republic will concede on the price of fuel.
Under the 2001 agreement, the price of Azerbaijani gas sold to Turkey is $120 per 1,000 cubic meters -- considerably lower than those in world markets. Supplies to the neighboring country began in 2007.
"We have purchased gas from Azerbaijan for a cheap price for only ten months," the Turkish minister said.
According to him, Turkey owes $600 million to $900 million for the difference in the price of gas supplied since April 2008.
Under the gas supply contract, the price is to be reconsidered a year after the start of gas deliveries, i.e. the new price is to be effective since April 15, 2008.
Yildiz said Azerbaijan’s charging the price complying with world market levels would be inappropriate, because Ankara imported Azerbaijani gas for even higher prices in the past.
"Through the hard times, we have stood by our Azeri brethren, so, now, they are paying us back. They say, let’s supply gas not for world prices, but a little cheaper. They need us and we need them," Yildiz said.*
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