A new gas row has erupted in Europe with Turkey's Botas demanding a higher price from Greece's Depa for Azeri gas that Ankara re-exports to Greece.
Botas was reported as saying Wednesday it would take the matter to international arbitration in Switzerland, while Depa late Wednesday rejected the Turkish claims.
"Depa has complied fully and in utmost good faith with its obligations under the contract with Botas," the company said in a statement.
"Depa has confirmed its preparedness to pay Botas the revised contract price for the full period of its effect and to be invoiced accordingly immediately--there ought to be no dispute between the parties," it said.
Since 2002, Turkey has been selling up to 750 million cubic meters/year of Azeri gas to Greece under an agreed price formula.
However, Turkey is now paying an increased price for Azeri gas and wants to pass the hike onto Greece too.
Depa said the demand was unfair.
"Botas has claimed an additional revision of the price, also with retroactive effect, based on grounds which are factually unsubstantiated," it said. "Depa is confident in its position and looks forward to continuing its close and productive relationship with Botas."
Botas also says Depa owes it several hundred million dollars in unpaid gas bills.
The dispute comes against the background of speculation that Botas could be looking to buy Depa, which the Turkish company has denied.
Greece, as part of its efforts to raise funds for its struggling economy, has said it wants to sell off stakes in a number of state companies, including refiner Hellenic Petroleum and Depa.
Under its privatization plan, approved in June by the Greek Parliament as a condition for receiving fresh financial bailouts from the EU and IMF, Athens committed to selling a 55% stake in Depa.
Azerbaijan's state company, Socar, is also interested in buying into Depa.
Depa is a shareholder in one of the pipeline projects to bring more Azeri gas to Europe through the so-called southern corridor.
The Interconnector Turkey-Greece-Italy (ITGI) is a planned 11 billion cu m/year link, which its shareholders say is "the most advanced and competitive option to ensure physical transport of Azeri gas to where it is most needed in the EU, that is southern east Europe and central and northern European markets."
It is up against the 31 Bcm/year Nabucco pipeline project and the 20 Bcm/year Trans-Adriatic Pipeline, with commercial bids from the projects to transit gas from the second phase of Azerbaijan's giant Shah Deniz field due by October 1.
The southern corridor's purpose is to bring Caspian and Middle Eastern gas to Europe, thereby reducing dependence on Russian supplies.
