Turkish energy minister says Turkey, Azerbaiajn have agreed on natural gas price

"We have offered a reasonable price (for natural gas from Shah Deniz 1) to Azerbaijan and our offer has been accepted," Taner Yildiz told reporters after his meeting with Iranian Foreign Minister Manuchehr Mottaki.

Azerbaijan had earlier said that it had been selling natural gas to Turkey at one third of the global prices. However, Turkey said it had purchased natural gas at former rates for only ten months, and later proposed a raise in 2008.

Yildiz said Turkey still insists that its price offer for transit fee and natural gas from Shah Deniz 2 project was reasonable. However, he said this offer has not been accepted yet.

"I believe that Azerbaijan would accept this proposal too," Yildiz said.

Yildiz also said that Turkey asked Iran for a delay on repaying its debt for the gas it ordered earlier.

Yildiz said Iranian and Turkish officials would hold talks on technical issues for a week. And then an agreement is expected, he said.

/World Bulletin/