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Turkey reportedly demands discount on price of natural gas it buys from Russian Gazprom.

February 4, 2014

Turkish daily Zaman reported by quoting unnamed sources from the Turkish energy ministry saying that Turkey could not agree, during Prime Minister Recep Tayyip Erdogan's visit last week, on a discount on the price of natural gas Turkey buys from Iran and now waits for Russian Gazprom's response to Turkey's demand for a reduction in natural gas prices Turkey imports from this country. Turkey made the discount request with Russian authorities in December. Turkey is Gazprom's second largest customer in Europe after Germany , however, Turkey pays USD 20-25 higher than what Germany pays for 1,000m3 natural gas it buys from Gazprom , according to Zaman. Germany pays USD 375-380 per 1,000m3 for the natural gas to Gazprom while Turkey pays USD 390-400 on average (public and private companies) for the same amount of natural gas, Zaman reported. Turkey expects a USD 20-25 discount per 1,000m3 natural gas, according to Zaman. Turkey imported 45.27bn m3 natural gas in 2013 while the country imported 26.6bn m3 natural gas, about 60% of the country's natural gas imports, from Russia . Turkey's natural gas consumption increased to 47bn cubic meters last year from 45bn cubic meters in 2012, energy minister Taner Yildiz said earlier this month. The slower growth in natural gas consumption was due to the decline in natural gas' share in electricity generation even though household consumption actually rose, the minister explained. Turkey is expected to consume 46.5bn m3 of natural gas in 2014. Turkey currently imports natural gas from Iran , Azerbaijan , Russia , Algeria and Nigeria .

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Source: IntelliNews - Weekly Reports

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