2.4.9. Price Demands and Discontinued Supply in 2007

In December of 2007, Turkmenistan cut off gas supplies to Iran, attributing it to a technical fault. Extremely cold weather and a dispute over volumes and prices are suggested to be among the reasons for the supply disruption. Iran had been buying Turkmen gas for \$95/1000 m3, significantly lower than its export price of about \$300/1000 m3 to Turkey [5,34]. After four months of negotiations, Turkmenistan and Iran agreed on a price of \$130/1000 m3 for the first half of 2008 and \$150/1000 m<sup>3</sup> for the second half of 2008.
