Russia's Gazprom and six Turkish private firms end gas price discord

Russia's Gazprom is due to return to delivery of full gas flow to six Turkish private companies with application of gas price discount

Photo by: AA
Photo by: AA

Russia's Gazprom is due to return to delivery of full gas flow to six Turkish private companies with the application of a gas price discount, according to executives of Turkish gas companies on Wednesday.

Executives from the natural gas importing companies told Anadolu Agency that Russia's Gazprom's daily natural gas supplies to six private Turkish gas companies, which were reduced by half early February, will be returned to full capacity in a recent deal clinched between the parties, confirms Ria Novosti's reports earlier today.

Officials said that a discount was applied on the gas price, but confirmed that it was not the previously-agreed 10.25 percent discount.

"It is less but we cannot give more details as it is a confidential agreement between the two parties," they added.

Turkish private gas importers include Bosphorus Gaz, Enerco Enerji, Bati Hatti, Kibar Enerji, Avrasya Gaz and Shell Enerji.

According to the new deal, gas deliveries are due to return to full capacity once again with the newly-agreed reduced price.

Earlier it was reported that Russia's Gazprom, who was in discussions with six Turkish private companies on Jan. 29, unilaterally cancelled the 10.25 percent discount applied on natural gas supplies from Gazprom from Jan. 1 this year.

At the end of February, Gazprom also reduced daily natural gas supplies to Turkey by around 50 percent from Feb. 10 along the western line.

Turkey's Energy Ministry sources told Anadolu Agency that Gazprom invoiced the January gas exports to Turkish private companies at a 10.25 percent higher rate than the previously agreed discounted prices, effectively cancelling the discount.

Turkey, which is the second biggest consumer of Russian gas after Germany, imports around 30 billion cubic meters of gas from Russia annually via two pipelines; the Blue Stream and the western line. The private sector in Turkey imports 10 billion cubic meters (bcm) of natural gas per year, representing over 30 percent of Russia's gas exports to Turkey.

Out of 48 bcm, 38 bcm was imported by the state-owned crude oil and natural gas pipeline and trading company, BOTAS. Gazprom was due to enforce the 10.25 percent discount with BOTAS; however the company confirmed that this has never been applied.