Turkey will buy Azerbaijani gas at a new price

Turkey will buy Azerbaijani gas at a new price

Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz.

He said Turkey has continued to import natural gas from Azerbaijan although the gas supply agreement expired in April 2008.

"Today we no longer buy low-priced gas from Azerbaijan. In accordance with the new price to be agreed upon, we will pay the difference", he said, adding that Turkey is continuing talks with Azerbaijan’s SOCAR on natural gas, and hopes to reach an agreement soon.

Turkish media report that Turkey will have to pay at least $1.1 billion to Azerbaijan as price difference compensation if the new gas price is around $250 per 1,000 cubic meters, compared to the current price of $120.