Gazprom price hikes to 'pressure' Turkey: ex-BOTAS head

Former head of Turkey's Petroleum Pipeline Corporation says Gazprom's recent increase in gas prices is a tool to pressure Turkey in discount talks.

Gazprom price hikes to 'pressure' Turkey: ex-BOTAS head

World Bulletin / News Desk

Russia is pressuring Turkish private natural gas importers to give more ground in discount talks, the former head of the Turkish state-owned Petroleum Pipeline Corporation (BOTAS) said Thursday.

Turkey is negotiating with Russia for a cut in imported natural gas prices. Russian President Vladimir Putin offered a 6 percent discount last December, but the Turkish side seeks a higher reduction.

"Russia increased the gas prices for Turkey’s private importers to make these companies put pressure on the Turkish government," Gokhan Yardim, who is the current head of the private gas company Angora Gaz, told.

Russian energy giant Gazprom increased gas prices for Turkish private importers by $68 per 1,000 cubic meters in January.

Gazprom had decreased prices for private companies by 10 percent in Jan. 2014. However, the discount expired by the end of 2014 and the price for 1,000 cubic meters of Russian gas became $340.

Moreover, Gazprom added another 10 percent increase to prices in January this year. Now Turkish private natural gas importers are buying in Russian gas for $374 per 1,000 cubic meters. With this increase, private companies in Turkey paid an extra $60 million to Gazprom for January gas imports.

He claimed that, this way, Russia expects Turkey to settle for the 6 percent discount that Putin has offered.

 There are seven private natural gas importers in Turkey which buy in Russian supplies. The gas is then sold to around 30 private gas wholesalers in Turkey.

According to tariffs determined by BOTAS and approved by a Turkish watchdog, the Energy Market Regulatory Authority, the gas wholesalers are allowed to sell on with prices between $323 to $350 per 1,000 cubic meters.

In other words, with the final increase of prices by Gazprom, wholesalers in Turkey lose $24 to $51 for every 1,000 cubic meters of gas they sell.

 

Last Mod: 19 Şubat 2015, 16:47
Add Comment