Iran unyielding as gas dispute widens

A bitter dispute between Iran and Turkmenistan over gas prices risks the cancellation of a major deal, which could see the Central Asian nation lose its biggest customer.

According to Press TV, Turkmenistan has threatened to stop the gas flow across the border if Iran does not settle a debt which it claims remains outstanding from previous imports.

Ashgabat claims Iran owes it $1.8 billion from sales between 2007 and 2008 when freezing winters led to severe shortages across 20 Iranian provinces, forcing the country to raise gas imports from its northeastern neighbor.

At the time, Turkmenistan pounced on the occasion to demand a nine-fold hike which yanked the price up to $360 from $40 for every 1,000 cubic meters of gas.

According to Turkmen officials, the balance has built up to a debt of $1.8 billion which Iran is rejecting and has threatened to take the case to international arbitration.

Iran holds the world’s biggest gas reserves but they are mostly located in the country’s south, making the country reliant on its neighbors for supplies in the northern provinces. 

A recent drop in temperatures across Iran has prompted Turkmen authorities to threaten a halt to the gas flow unless the Islamic Republic clears the alleged debt.

Iranian media say the country can weather a full stop to the gas flow from Turkmenistan by completing pipe laying in the country’s north and temporary diverting of the gas used in industries to homes.  

SS