Media: Gazprom decided to cancel the discount for private Turkish companies

MOSCOW, 29 Jan. Gazprom decided to cancel gas discount for Turkish private companies, granted in 2015, informagentstvo according to Turkish “Anadolu”.

“According to the correspondent of the Agency “Anadolu”, the six companies that import in the year 10 billion cubic meters of gas and receive a discount of 10.25% from 1 January 2015, will no longer be able to use it. On one of last weeks “Gazprom” held a meeting with the representative of private companies, where it was announced about this decision. It was said that the discount will once again put on the agenda, when the crisis between Russia and Turkey will be resolved,” writes the Agency.

Review of “Gazprom” and “Gazprom export” so far failed to obtain. However, a source from the Russian side, familiar with the situation, reported that the negotiations on this issues continue, a final decision on the prolongation of the discount or cancellation yet.

Volumes and discounts

Russian gas arrives in Turkey on two fronts: the TRANS-Balkan gas pipeline and the gas pipeline “Blue stream”, in 2014 the volume of deliveries amounted to 27.4 billion cubic meters with a total consumption of 48 billion. “Gazprom” supplies gas to the Turkish state companies Botas and private companies that obtained the right to import gas in the framework of the Turkish gas market liberalization.

In the spring of 2015 it was reported that “Gazprom” has agreed with the private importers of Turkey to grant them discounts on gas. It was about companies such as Enerco Enerji Avrasya gaz and Akfel gas (all three are included in Akfel Holding), Bosphorus gas, Shell, Bati Hatti and Kibar Enerji. “Gazprom” has reduced their price retroactively, from 1 January 2015 until the end of the year, “Gazprom” will return the part of the importers of already made payments.

However, the Turkish traders were dissatisfied with the results of negotiations with “Gazprom”, as the discussion on prices for 2015 year started late and proved difficult, but in the end the price even with the discount, it was still higher than for Ukraine and Germany.

Discounts on Russian gas in 2015 waited and Botas state. In February 2015, Turkey’s energy Minister Taner Yildiz said that Turkey and Russia agreed on a discount at 10.25%, but Gazprom and Botas were arguing about which component of the formula to apply it. Botas has not received discounts from Gazprom and in October Turkey filed a lawsuit in the Stockholm arbitration with the requirement about reduction of Russian gas price.