Free Preview of Members-Only Content
To view the requested intelligence, you must be a Stratfor.com member.
Turkmenistan and Iran reached a deal April 24 to resume natural gas deliveries after Ashgabat cut supplies in December 2007 following a price dispute. The deal was struck during a meeting between Turkmen Foreign Minister Rashid Meredov and Iranian Ambassador to Turkmenistan Mohammad-Reza Forqani.
Through the Karabcheh-Korkui pipeline, Turkmenistan sends Iran approximately 8 billion cubic meters of natural gas annually at a rate of $75 per thousand cubic meters (tcm). Ashgabat increased the price to $140 per tcm, triggering the dispute with Iran. The price-hike was not just directed at Iran, however; it also affected Russia, which will be paying $150 per tcm beginning July 1 (and there is talk that the price could increase more in 2009). Sources told Stratfor that Iran was waiting on Russia to force Turkmenistan to back away from the price hike, but Moscow has accepted the increase without a fight — leaving Iran to follow suit. While Turkmenistan is a relatively minor power, it actually holds the upper hand in both of these supply relationships. Turkmenistan is Iran’s only external natural gas supplier, and without Turkmen natural gas Russia cannot fill its European export orders.
| Stratfor Members, please log in at the top left hand corner |
