Bloomberg News

Turkish Gas Company Cancels Russian Contract on Discount Dispute

October 02, 2011

Oct. 2 (Bloomberg) -- Botas Boru Hatlari Ile Petrol Tasima AS canceled a natural-gas supply contract with Russia’s export monopoly after failing to agree on discounts.

Botas, as the Turkish gas distributor is known, decided to allow the contract to buy 6 billion cubic meters of gas a year to lapse, OAO Gazprom’s press service said today, without elaborating.

The cancellation doesn’t mean natural-gas purchases from Russia will stop, Turkish Energy Minister Taner Yildiz told reporters at the parliament in Ankara yesterday, according to the state-run Anatolia news service. Botas wanted a lower price than Gazprom was willing to allow, Yildiz said Sept. 29.

Firms from Turkey’s private sector will probably sign new contracts with Gazprom, the world’s biggest gas producer and Russia’s exporter of fuel, within three months to continue the gas flows, Anatolia reported, citing the minister.

Botas’s press service wasn’t immediately available to comment when called by Bloomberg.

--Editors: Torrey Clark, Alex Nicholson

To contact the reporter on this story: Emre Peker in Ankara at epeker2@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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