Iran to Seek Compensation over Repeated Halts in Turkey's Gas Imports

TEHRAN (FNA)- Iran will demand compensation from Turkey over what it sees as unacceptable delays in repairing a pipeline carrying Iranian gas.
Last week Iran halted gas flows through the pipeline after a request from Turkey which said it wanted to check for a possible technical fault.

National Iranian Gas Company (NIGC) Managing Director Javad Oji was quoted by daily newspaper Iran on Sunday as saying Kurdish rebels had blown up the pipeline, forcing its fourth closure this year. Turkey is engaged militarily with the militants.

MNA quoted "economic experts" as saying Turkey was not rushing to re-open the pipeline as it was benefiting from importing cheaper Russian gas and would cite force majeure for the closure, allowing it to avoid paying compensation for the problem.

"Considering Turkey's delays in repairing the damaged gas pipeline which exports Iran's gas, the NIGC demands compensation from Botas," the report said, referring to the Turkish state pipeline company.

Oji has previously said that according to the contract if one of the parties fail to fulfill its commitment it had to pay compensation.

"Since the provision of security on Turkish territory is the responsibility of that country, and such incidents have happened several times, Botas has to compensate for the delays," MNA quoted Oji as saying.

Under the terms of a contract signed in 1996, Iran has to deliver 10 billion cubic meters annually to Turkey, and if either side fails to fulfill its commitment, it is liable for compensation.

Turkey paid $600 million in compensation to Iran in 2009 due to a shortfall in gas purchases.