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Ankara may sue Tehran over natural gas

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Published: Feb. 12, 2010 at 10:10 AM
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ANKARA, Turkey, Feb. 12 (UPI) -- Turkish pipeline operator BOTAS could take Iran to international court over a price mechanism that separates gas purchase volumes from consumption rates.

Ankara is attempting to revise its natural gas agreements with Tehran. The current scheme, dubbed "take or pay," requires the consumer to pay for gas even if it isn't used.

Turkish Energy Minister Taner Yildiz is negotiating with Iranian officials to revamp the agreement, though Iran has refused, Turkey's English-language daily Today's Zaman reports.

BOTAS is expected to take the case to the International Court of Arbitration if Tehran does not reverse course, the report added.

BOTAS is required to purchase more gas in 2010 than the average consumption rate of the past two years.

Iran is eager to expand its client base for natural gas as it struggles with crippling economic sanctions and a dilapidated domestic energy infrastructure.

Ankara in 2004 sued Tehran in international court because of natural gas prices, poor quality and intermittent deliveries. Ankara won on the price issue but the court did not rule on the quality and reliability complaints.

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