Iran’s sources claim the Court of Arbitration backs Iran’s gas claims against Turkmenistan

Iranian news agency Fars reported that Iran won the first phase of the legal proceeding at the International Court of Arbitration (ICA).

According to the court ruling, Turkmenistan must pay compensation to Iran for sudden cut in gas supplies during the winter, an informed source at the Iranian Ministry of Petroleum told the media outlet. According to him, Turkmenistan was not authorized to do so, which was proved during the legal proceedings.

Later a representative of National Iranian Gas Company claimed that the court hearing is underway and the final verdict had not been delivered yet.

Let us recall that Turkmengas filed a lawsuit against Iran-based NIGC to the International Court of Arbitrations in mid August 2018. In October 2018 it transpired that Iran submitted a counterclaim against Turkmenistan-based company.

Turkmenistan accused Iran of unsettled debts, which, according to various estimates, range from $1,5 to $2 billion.

Iran, in its turn announced that the counter claim will primarily focus on halted gas supplies which was cut off by Turkmenistan without any notice, poor quality of supplied gas and inflated prices.

An abnormally cold winter was recorded in Iran in 2008-2009 and in this connection the NIGC was urged to purchase additional volumes of gas from Turkmenistan.

According to NIGC, pursuant to the agreement, as of late 2018, the procurement price for the Turkmen gas amounted to $40 per a thousand cubic meters but Turkmenistan increased the price eightfold.

The Turkmen side claims that the low price applied only to the volume stipulated by the contract. The additional volume purchased by Iran was sold at the market price.

Source: Chronicles of Turkmenistan