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Saturday, October 24, 2009

Iran plans to file 'gas complaint' against Turkey

Iran reportedly plans to file a complaint against Turkey at the International Chamber of Commerce (ICC) Commission on Arbitration over a 'reduction in gas imports'.

The Iranian-based ISNA news agency says the complaint will be based on a "take or pay" clause in the gas deal between Iran and Turkey.

Under the "take-or-pay" contract, the importer is required to take delivery of a minimum annual volume and pay if less is taken.

The move came months after the international arbitrary body ruled in favor of Turkey in a gas price dispute with Iran.

In February, Turkey won the Swiss-based arbitration case, obliging Iran to revise the per-unit price of gas exports to the neighboring country.

Head of the National Iranian Gas Company (NIGC), Azizollah Ramezani, also confirmed to ISNA that 'the clause (take-or-pay) has been considered in the agreement (between Iran and Turkey)'.

Iran is the second biggest gas exporter to Turkey, which receives between 15 and 18 cubic meters of gas through a pipeline linking the northwestern city of Tabriz to the Turkish capital of Ankara.

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