Russia, Turkey may agree over gas price by end of June: Gazprom

MOSCOW

REUTERS Photo

Russia’s Gazprom has said all commercial conditions for a contract with Turkey’s state-owned crude oil and natural gas pipeline company Botaş had been agreed. 

“The price might be agreed to by the end of June,” said Gazprom deputy head Alexander Medvedev on June 9, as quoted by Reuters. 

Russia’s top gas producer plans to export between 153 billion and 155 billion cubic meters (bcm) to the European Union and Turkey this year. Gazprom sees an average price for gas supplies to the EU and Turkey at $240-$245 per 1,000 cubic meters, he said at a conference.

Turkish Botaş is the biggest importer of Russian gas, with price discount negotiations still underway. 

In February, Turkish Energy Minister Taner Yıldız said after complex and lengthy negotiations Russia had agreed to give Turkey a discount of 10.25 percent on gas supplies. The parties have, however, not signed the agreement, as they did not agree on technical details and price formulation, according to sector sources. 

Gazprom, however, agreed in May to provide discounts on Russian gas to private Turkish companies after months of negotiations.

The parties agreed to reduce the price from $374 per 1,000 cubic meters to $300 in the first quarter of the year. In the second quarter the price will be reduced to $260.

The intergovernmental agreement between Russia and Turkey on the Turkish Stream construction may be signed before year’s end, Medvedev also said at the conference, as quoted by Russia’s TASS.