30 July 2019 - 12:40
  • News Code: 291544
Iran-Turkmenistan Gas Case Still Open

TEHRAN (Shana) -- The National Iranian Gas Company (NIGC) said that the gas case between NIGC and Türkmengaz Company was still being considered in the International Court of Arbitration.

According to NIGC, Mohammad Asgari reacted to reports about Iran having won the case and that the Turkmen side was required to pay damages to NIGC, and said the case was still open in the International Court of Arbitration and no final verdict had so far been issued regarding the case so far.  

Iran's complaint chiefly focuses on Turkmenistan's cutting off the gas without prior notice, low quality of the gas, and the high price. 

The dispute between the two began when Turkmenistan increased the agreed price of 40 dollars per thousand cubic meters eight-fold by late 2008. 

The dispute exacerbated in the face of an in unprecedented cold weather in winter 2016 when Turkmenistan asked to receive what it said to be some 1.8 billion dollars debt from Iran, caused by illogical increased prices, leading to one-sided shut down of the gas transfer line without any prior notice. 

On the other side, the quality of the gas being swapped from Turkmenistan to Azerbaijan through Iran got very low at some point. 

After several rounds of unfruitful negotiations on the gas dispute, the two sides decided to refer it to global arbitration body early in 2018. 

Proposed by National Iranian Gas Company (NIGC) and accepted by the Turkmen gas company Türkmengaz, the government said the dispute had been officially filed to International Court of Arbitration for resolution, according to a report by the Azeri media 'Trend'. 

It will take about two years for the court to conclude and there will be no gas export from Turkmenistan during this period. 

News Code 291544

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