ISMAIL – Turkey pays exorbitant prices for Russian and Iranian gas

Turkey pays exorbitant prices for Russian and Iranian gasTurkey pays $418 per 1,000 cubic meters of natural gas from Russia, its largest supplier, and $487 for gas from Iran, the countryand#39s second-largest supplier However, Azerbaijan — the third-largest supplier of natural gas to Turkey, sells gas to Turkey for $340 per 1,000 cubic meters, show documents obtained by Todayand#39s Zaman.While Turkish media have been discussing the recent discount on the price of the gas Turkey purchases from Russia and the possible aantages of the envisioned pipeline between Russia and Turkey following Russian President Putinand#39s one-day visit to the country last week, the documents show that public money is being spent on unnecessarily expensive gas.

Analysts say the agreement between Turkey and Iran, in which Turkey purchases gas at a higher price than from its other suppliers, weakens Turkeyand#39s bargaining power against Russia The other factor that energy pundits underline regarding the disproportionate pricing of gas purchased by Turkey is the nature of andldquopay or takeandrdquo agreements between buyers and sellers that have compelled Turkey to buy fixed quantities of gas for a long period of time. Another reason the quantity of gas purchased from Azerbaijan is not increased, according to analysts, is the lack of infrastructure that can transfer more gas from Azerbaijan to Turkey.

Others have speculated that the misguided energy policies of the Justice and Development Party (AK Party) are responsible for the decisions to purchase expensive gas.The state-owned Turkish Pipeline Corporation (BOTAI) purchases yearly quantities of 20 billion cubic meters of gas from Russia, 96 billion from Iran and 6 billion from Azerbaijan.

In addition, private gas companies in Turkey purchase another 10 billion cubic meters of gas from Russia each year.

SOURCE: Today’s Zaman