Iran may apply non-market approaches in exporting its natural gas to friendly countries

YEREVAN, December 6. /ARKA/. Iran may apply non-market approaches in exporting its natural gas to friendly countries, Iranian Ambassador to Armenia Mohammad Reisi told journalists on Friday. 

“We maintain very good relations with Armenia,” he said adding that the agreement signed with Armenia a few years ago to export natural gas here in exchange of electric energy is in force now. “We remain stuck to this agreement despite some changes in prices. Iran applies another policy to friendly countries - it may apply a system of discounts, but as a whole, Iran is guided by international prices.”

The ambassador said that Iran sells natural gas to Turkey and other countries at current international prices, but may offer discounts to friendly countries – discounts depend on arrangements with these countries.   

As an example, he pointed out that Iran exchanges one cubic meter of gas with Armenia for 3 kilowatt hour electric power. 

“This is not beneficial for Iran, but Iran decided so once and it remains stuck to its commitments,” he added.

Asked whether Iran can provide its natural gas to Armenia at a lower price than Russia’s, Reisi said that it is not clear yet which price is higher.  

He said the matter should be negotiated and it will become known which price is higher at the moment of signing the agreement. 

“First of all, it should be specified what are prices for Russian and Iranian natural gas, and after that it will become clear whether the countries can compete or they are equal. We can sell gas at $400 to one country and at $100 to another country.”

Earlier, as Armenian media reported, Reisi implied an idea that Iran might sell its natural gas to Armenia at a lower-than-Russian price. 

After that, the Armenian energy minister said that Iran would have sold 1,000 cubic meters to Armenia at least for $400 on the board (Russia sells at $189).   

The ambassador said stressed that he has not seen a document with the price of $189 on it. ----0-----

16:43 06.12.2013

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