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TURKEY MAY END RUSSIA GAS CONTRACT UNLESS IT SEES PRICE CUT
epress.am
09.29.2011 18:08
Turkey may terminate a contract to buy 6 billion cubic metres of
natural gas from Russia's Gazprom unless it obtains a sufficient
price reduction, Energy Minister Taner Yildiz said on Thursday,
Reuters reports.
Turkey has take-or-pay contracts to buy up to 30 billion cubic metres
of gas annually from Russia but has been buying less. Gazprom says
it sold 18 bcm to Turkey last year.
This year, Turkish officials expect to take delivery of more than
the 75 percent of the contracted amount to avoid take-or-pay penalties.
One way to bring down that required amount is to cut contracts.
"There is a 6 bcm contract on the West pipeline that's about to end.
We will terminate the contract if we don't see a sufficient price
reduction," Yildiz said.
He said Turkey was reevaluating contracts to make savings after seeing
a 39 percent increase in natural gas prices in the past 29 months.
It has pressed Russia for discounts, but the two sides failed to
reach an agreement in March when the subject came up during talks
in Moscow between Turkish Prime Minister Recep Tayyip Erdogan and
Russian President Dmitry Medvedev.
The export arm of Russian gas producer Gazprom said on Thursday it
was in talks with Botas, Turkish pipeline operator and gas importer,
on supply contracts and that the Turkish Energy Ministry was not
involved in negotiations.
"Gazprom Export has not received any information from its Turkish
partner, Botas, on its position over prolonging the contract,"
Gazprom said in emailed comments.
From: A. Papazian
epress.am
09.29.2011 18:08
Turkey may terminate a contract to buy 6 billion cubic metres of
natural gas from Russia's Gazprom unless it obtains a sufficient
price reduction, Energy Minister Taner Yildiz said on Thursday,
Reuters reports.
Turkey has take-or-pay contracts to buy up to 30 billion cubic metres
of gas annually from Russia but has been buying less. Gazprom says
it sold 18 bcm to Turkey last year.
This year, Turkish officials expect to take delivery of more than
the 75 percent of the contracted amount to avoid take-or-pay penalties.
One way to bring down that required amount is to cut contracts.
"There is a 6 bcm contract on the West pipeline that's about to end.
We will terminate the contract if we don't see a sufficient price
reduction," Yildiz said.
He said Turkey was reevaluating contracts to make savings after seeing
a 39 percent increase in natural gas prices in the past 29 months.
It has pressed Russia for discounts, but the two sides failed to
reach an agreement in March when the subject came up during talks
in Moscow between Turkish Prime Minister Recep Tayyip Erdogan and
Russian President Dmitry Medvedev.
The export arm of Russian gas producer Gazprom said on Thursday it
was in talks with Botas, Turkish pipeline operator and gas importer,
on supply contracts and that the Turkish Energy Ministry was not
involved in negotiations.
"Gazprom Export has not received any information from its Turkish
partner, Botas, on its position over prolonging the contract,"
Gazprom said in emailed comments.
From: A. Papazian