"Gas scandal" starts between Turkey and Iran -- 27 January 2006 [02:11] - Today.Az
Gas crisis happened between Turkey and Iran like Ukraine and Russia.
As APA reports, the reason for the crisis is Iran's decreasing the gas delivered to Turkey after the weather got cold. Iran had delivered 20 cubic meters gas to Turkey a day, but now it is 6 cubic meters only. "Hot line" has been opened in Energy Ministry of Turkey, because of the situation. Energy Minister of Turkey Hilmi Guler said the problem might last 1 or 2 days and the population can not notice the problem and he contacted energy ministers of Russia and Iran, and ambassadors to the country. As a result, Iran pledged to deliver 10.5 cubic meters gas to Turkey a day. At the same time, after prime minister Recap Tayyip Erdogan made a call to Russian president Vladimir Putin, Russia decided to increase the volume of the gas.
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India fears Iran may extract high price for piped gas ANUPAMA AIRY -- Posted online: Friday, January 27, 2006
NEW DELHI, JAN 26: The real issue regarding the price of the piped gas from Iran has finally come to the fore. The petroleum ministry now fears that given the prevailing high oil prices, the issue of gas price may be “extremely difficult to resolve” as Iran can be expected to seek the highest possible price for its gas.
It is not incidental but these concerns come after two years of intense deliberations among the three countries over various issues concerning the multi-billion dollar Iran-Pakistan-India (IPI) gas pipeline project.
“Since the piped gas is expected to be utilised primarily for power projects in north, north-western and central India, an assessment would have to be made about the price that India can afford; taking into account the price of competing energy sources including coal, hydro and nuclear. Petroleum ministry will closely consult the ministry of power in respect of gas price,” says an internal note of the petroleum ministry.
However, before initiating discussions with Iran on the formula relating to the price of gas, the petroleum ministry is planning to approach the Cabinet to seek its directions on an appropriate project structure for executing the IPI pipeline project. The Cabinet’s view would also be sought on the proposed tri-partite government-to-government framework agreement.
The ministry’s note discussed two options as regards the project structure. The first talks about New Delhi’s participation in a corporate structure, which would mean that India would own, build and operate the entire project. Under the second option, gas will be purchased by India at the Pakistan-India border, with the project being implemented in Iran and Pakistan by the two governments concerned (the pipeline will end at the Indian border after which Indian companies will link it with the natural gas grid).
The first option, as per the note, will not only provide for Indian representation at the apex corporate level but will also enable it to monitor all aspects of the project during the planning, construction and operational phases.
“However, Pakistan is expected to balk at the idea of an intrusive Indian presence monitoring activities on its territory. At the same time, Iran is sensitive to the fact that such a major multi-billion dollar project from which US companies would be excluded due to the US Sanctions Act would attract adverse US attention,” the note added.
While the second option was approved in principle by the Cabinet in February last year, a final view has not been taken in this regard as it would appear that this would be the preferred option for Pakistan and Iran.