Turkey has taken Iran to international arbitration

Turkey has taken Iran to international arbitration over the price paid for gas imports, Turkish energy officials said on Tuesday, after Tehran rejected Ankara's complaint that the price was too high.

10 BILLION CUBIC METRES OF GAS EACH YEAR FROM IRAN
Turkey imports 10 billion cubic metres of gas each year from Iran, making it Turkey's second-biggest supplier after Russia.

CONSUMPTION IS EXPECTED TO INCREASE 18 PERCENT
Turkey's natural gas consumption is expected to increase 18 percent to 48 billion cubic meters this year from 2011 said Energy Minister Taner Yildiz.

TURKEY WENT TO INTERNATIONAL ARBITRATION BECAUSE..
"The expected discount was not made. For this reason, Turkey went to international arbitration," said one senior Turkish official.

IRAN: 'WE WERE UNAWARE OF TURKEY'S MOVE'
Iranian officials, contacted by Reuters in Tehran, said they were unaware of Turkey's move.

"Both sides should remain committed to the contract, which has an article regarding arbitration," said Majid Boujarzadeh, spokesman for Iran's National Gas Company.

UNRELATED TO THE INTERNATIONAL PRESSURE IRAN IS FACING
The dispute is unrelated to the growing international pressure Iran is facing over its nuclear programme.

MOST LIKELY TO BE THROUGH THE INTERNATIONAL CHAMBER OF COMMERCE IN SWITZERLAND
Officials did not specify where Turkey was seeking arbitration, but it was most likely to be through the International Chamber of Commerce in Switzerland as Turkey had resolved a previous contractual dispute with Iran over gas supplies at the body.

IN 2009, TURKEY TOOK $800 MILLION COMPENSATION
In 2009, ICC awarded Turkey $800 million compensation related to gas purchases from Iran.


REUTERS/BLOOMBERG