Middle East Economic Survey


No 23



Turkey Has Paid Iran $704Mn For Unused Gas

Turkeys daily Zaman reported on 29 May that Ankara has paid $704mn to Iran as a result of take or pay terms in a long-term gas supply contract that Turkish state pipelines operator BOTAS signed with the National Iranian Gas Export Company (NIGEC) in 2003. The contract stipulates that BOTAS is obliged to import at least 6.8 bcm/year of gas from Iran, but a sharp fall in demand during 4Q08 led to a...