Gazprom Cancels Gas Discount for Turkish Companies

A Gazprom building in Russia. (Source: AA)
 A Gazprom building in Russia. (Source: AA)

A Gazprom building in Russia. (Source: AA)

ANKARA (Hurriyet Daily News) — Russian energy giant Gazprom has canceled a discount on natural gas for the Turkish private sector and companies have begun to be notified, industry sources told Reuters on January 29.

The discount on gas for the Turkish private sector has been in place since January 1, 2015.

It is not clear what the new prices will be.

One source said the decision to cancel the gas discount for Turkish companies has begun to be declared since last week.

Another source claimed the gas price for the private sector will increase up to $196-$197 after the cancelation of the discount.

After a Russian jet was downed by Turkey in November 2015, Russia has imposed sanctions in a number of economic and trade fields.

Turkey consumes around 50 billion cubic meters (bcm) of gas annually, around 30 bcm of which is imported from nearby Russia. Turkey also imports gas from Iran and Azerbaijan as well as liquefied natural gas (LNG) from Algeria and Nigeria.

In line with a deal with Russia in 2013, Turkey’s Bosphorus Gas, Enerco Enerji, Batı Hattı, Kibar Enerji, Avrasya Gas and Shell Enerji imports around 10 bcm of gas a year.

Turkey’s gas grid and Gazprom had agreed upon a 10.25 percent of gas discount, but this decision has never been effective.

Botas then appealed to the International Chamber of Commerce (ICC) to resolve a row over the price of gas from Russia after the two countries failed to sign a deal, the company said on Oct. 27, 2015.

 

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