Iran signals discount in gas price to Turkey

Iran and Turkey should continue their gas price negotiations until they can find an acceptable price for each other, the Iranian ambassador to Turkey has said, signaling a decrease in the price of Iranian gas to Turkey.

“We may lose a good customer unless we accept Turkey’s gas price revision demand. We need to continue to have negotiations until both parties can find an acceptable price for each other,” Iranian Ambassador to Turkey Ali Reza Bikdeli told journalists on Nov. 17, after recent Turkish demands for a decrease in gas prices from Iran.

Both Turkey and Iran can ask for a revision in the price of gas according to the bilateral agreement, Bikdeli said.

“Nobody should see Turkey’s revision demand as an indication of a disagreement between Turkey and Iran,” he said, adding that both countries are also continuing their negotiations regarding Turkey’s potential purchase of extra gas from Iran this winter.

Turkey imports about 20 percent of its oil and gas needs from Iran, and Turkey appears to be one of the potential routes for the transfer of Iranian gas to global markets amid a possible loosening of sanctions.

“Turkey may not be the only option to become a transit route for Iranian gas, but to me it is the best option,” Bikdeli said, adding that the negotiations also continue to carry Turkmen gas to Turkey via Iran.

Bikdeli also said recent oil prices are not sustainable.

Meanwhile, Iran’s Oil Minister has accused some OPEC countries of making up excuses to justify their refusal to stabilize prices by cutting output. This was possibly a reference to Saudi Arabia, after a Saudi official on Nov. 16 insisted the issue should be left to market forces. The Saudi finance minister...