Natural gas in Turkey

Turkey consumes about 60 billion cubic metres of natural gas each year,[1] which supplies over a quarter of Turkey's primary energy.[2]

Primary energy supply in Turkey

Blue Stream, a major trans-Black Sea gas pipeline, has been operational since 2005, and delivers natural gas from Russia to Turkey. The Tabriz–Ankara pipeline is a 2,577-kilometre-long (1,601-mile) natural gas pipeline, which runs from Tabriz in northwestern Iran to Ankara in Turkey. The pipeline was commissioned in 2001. In Erzurum, the South Caucasus Pipeline, which was commissioned in 2006, is linked to the Iran-Turkey pipeline.

SOCAR Star Aegean refinery, İzmir: Most oil is imported

In August 2020, Turkey discovered a large sweet gas field in the Black Sea.[3][4][5]

Production

As of 2022, almost all natural gas consumed by Turkey is imported, but production from the Sakarya gas field in the Black Sea is planned[6] to start in 2023 and provide almost a third of national demand.[7]

Imports

In 2021 imports totalled 60 bcm:[8] a third of the 46 bcm which came by pipeline was from Russia,[9][8] but one long-term contract expired at the end of 2021 and the other ends in 2025.[6][10] By another source, in 2021 Turkey consumed 48.1 bcm of gas, which included 33.6% from Russia, 11.1% from Iran, 24% from Azerbaijan, and also LNG from Nigeria and Algeria.[11] BOTAŞ imported 56 bcm in 2021[12] and would like to import from Northern Iraq but completing the Iraqi part of the pipeline is mired in disputes between the KRG and Iraq central government.[13] Turkey suspects winter cuts in long-term (to 2026[14]) contracted supply from Iran are not faults but Iran keeping the gas for its own use, especially when the market price is high.[13] However some gas in Iran is wasted by flaring so Iran would benefit by selling that.[15] In 2022 some LPG was also imported from Russia.[16]

In 2021 contracts with Gazprom were renewed and linked to Title Transfer Facility,[17] including a four year deal to the end of 2025 for 5.75 bcm a year through TurkStream (which has total capacity 31.5 bcm).[18] Bosphorus Gaz, Akfel Gaz, Bati Hat and Kibar Holding have applied to import from Russia through the 6 bcm a year Trans-balkan pipeline in 2022, but the agreement for Botas to import gas through that pipeline ends at the end of that year.[19]

In 2021 a contract was agreed with Azerbaijan to import 11 bcm more per year until the end of 2024.[20]

Transmission and storage

There are many gas pipelines.[21] The Southern Gas Corridor includes the Shah Deniz 2 gas field, the South Caucasus pipeline, TANAP and the Trans Adriatic Pipeline: TANAP is being expanded to 31 bcm per year.[22] However, gas imports cost $12 and $15 billion per year (and the lira is weak);[23] they are a significant part of the import bill. A cheaper supply from Turkmenistan has been planned for decades,[24] but a pipeline under the Caspian Sea has not yet been built[25] partly due to lack of an agreement between Turkmenistan and Azerbaijan.[26] Liquefied natural gas (LNG) is imported from several countries including Egypt, Algeria and the United States.[21] In 2021 there was about 5 billion cubic metres (bcm) of storage (underground in Silivri and Aksaray[5]) which is planned to reach 11 bcm by 2023.[27]

Consumption
Electricity generation by gas (dull yellow) increases when hydropower (blue) falls due to drought

About a quarter of gas is used by industry and a quarter by households.[2]: 139  About half of residential energy demand is met by gas.[2]: 139  Electricity generation in Turkey varies greatly depending on whether there is enough rain to produce hydroelectricity; therefore, when it rains, Turkey burns less gas.[2]: 139  The International Energy Agency predicted in 2021 that use for electricity generation will decline.[2]: 140  According to BOTAŞ the price of gas for Turkish households was the lowest in Europe in April 2022,[28] and they said residential customers were getting 70% price support from the government.[29] Prices for industry and power plants are more than double the household price.[30]

Economics

Both national gas development[31] and BOTAŞ are subsidised by the government.[32] In 2021 households were subsidized 80 billion lira ($7 billion - about 4 times their electricity subsidy).[5] Gas imports deplete foreign exchange reserves[33] and some analysts say that imported oil and gas is a key weakness in the economy of Turkey.[34] The country would like to become a hub to supply the EU,[35] however EU gas consumption is expected to decrease, so analyst Kadri Tastan says this is unlikely in the long term due to the EU green transition.[36]

Some imports from Russia are linked to the oil price, which is said to be a good deal for Turkey.[37]

Geopolitics

Turkey opposes some gas exploration by the Republic of Cyprus because of the Cyprus–Turkey maritime zones dispute.[38]

In 2018, Turkey was involved in a diplomatic dispute with Cyprus and Greece in regards to oil and gas exploration in the eastern Mediterranean, after the Turkish foreign minister Mevlüt Çavuşoğlu arbitrarily announced the country's intention to begin exploration in what is recognized as the exclusive economic zone (EEZ) of the Cyprus. The dispute escalated on 9 February, after the Turkish Navy prevented a drill ship operated by Italian oil company Eni S.p.A. from exploring gas reserves off the island, despite being licensed by the Cypriot Government. In November 2018, ExxonMobil began hydrocarbon exploration in the eastern Mediterranean sea after being escorted by the US Navy.[39][40]

In July 2019, the European Council adopted the following conclusions on the Turkish drilling activities in the eastern Mediterranean:[41]

  • Calls again on Turkey to act in a spirit of good neighbourliness and respect the sovereignty and sovereign rights of Cyprus in accordance with international law.
  • Welcomes the invitation by the Government of Cyprus to negotiate with Turkey on delimitation of exclusive economic zones and the continental shelf through dialogue and in full respect of international law.
  • The EU remains fully committed to supporting the UN-led efforts to work with the parties with a view to creating the conditions conducive to resuming negotiations on a comprehensive settlement of the Cyprus problem.
  • To suspend negotiations on the Comprehensive air transport agreement and not to hold further meetings of the EU-Turkey high-level dialogues.
  • The Council endorses the commission's proposal to reduce the pre-accession assistance to Turkey for 2020 and invites the European Investment Bank to review its lending activities in Turkey.
  • In accordance with the European Council conclusions of 20 June, invites the High Representative and the commission to continue work on options for targeted measures in light of Turkey's continued drilling activities.
  • The council will closely monitor developments and will revert to this issue as appropriate.

History

The first imports from Russia were in 1986, and from Azerbaijan in 2007.[42] And LNG from Algeria since 1994 and Nigeria since 1999.[42]

See also

References
  1. "A Cold Winter: Turkey and the Global Natural Gas Shortage". Edam. 2021-10-06. Archived from the original on 2021-12-17. Retrieved 2021-12-19.
  2. IEA (March 2021). Turkey 2021 – Energy Policy Review (Technical report). International Energy Agency. Archived from the original on 2022-03-07. Retrieved 2021-12-19.
  3. "Turkey Makes Significant Black Sea Gas Find: Sources". The New York Times. 20 August 2020. Archived from the original on 22 August 2020. Retrieved 28 August 2020.
  4. "Black Sea gas strengthens Turkey's hand in geopolitics". Al Jazeera. 27 August 2020.
  5. "Turkey to produce 'sweet' natural gas, says minister". Hürriyet Daily News. Retrieved 2022-04-13.
  6. "Republic of Turkey Ministry of Energy and Natural Resources - Natural Gas". enerji.gov.tr. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  7. "Turkey's Black Sea gas find to raise output to 25% of EU capacity". www.worldoil.com. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  8. "Turkey 2021 Gas Imports: Ukraine War Puts Russia Reliance In Focus". MEES. Retrieved 2022-03-29.
  9. "Russia-Ukraine war: How will it affect Turkey's economy?". Archived from the original on 2022-02-25. Retrieved 2022-03-04.
  10. Reuters (2022-02-25). "Factbox: Turkey's ties to Russia, Ukraine limit its room to manoeuvre". Reuters. Retrieved 2022-03-24.
  11. "Russia-Ukraine war: How will it affect Turkey's economy?".
  12. "Trade | BOTAŞ - Boru Hatları İle Petrol Taşıma Anonim Şirketi". www.botas.gov.tr. Retrieved 2022-03-29.
  13. "Iraqi Kurdish gas to Turkey? Easier said than done". Middle East Eye. Archived from the original on 2022-03-13. Retrieved 2022-03-09.
  14. "Iran has a long way to go to export natural gas to Europe". Middle East Monitor. 2022-03-22. Retrieved 2022-03-24.
  15. "PM Barzani discusses energy, education, migration with PM Johnson". www.rudaw.net. Retrieved 2022-04-20.
  16. Reuters (2022-04-11). "Russia's Sibur diverts LPG to Turkey after Dutch offloading issues, sources say". Reuters. Retrieved 2022-04-13.
  17. Welle (www.dw.com), Deutsche. "Turkey targets Balkans and EU renewables markets | DW | 30.03.2022". DW.COM. Retrieved 2022-04-18.
  18. Reuters (2022-01-06). "Russia's Gazprom signs four-year gas deal with Turkey's Botas". Reuters. Retrieved 2022-04-20.
  19. Byrne, David O. (2012-08-13). "Three companies have contracts with Gazprom to import gas to Turkey: official". S & P Global. Retrieved 2022-04-20.
  20. "Turkey signs deal to import natural gas from Azerbaijan". Offshore Technology. 2021-10-18. Retrieved 2022-04-21.
  21. Elliott, Stuart; O'Byrne, David (2021-12-09). "Egypt emerges as key LNG supplier to Turkey in Q4". www.spglobal.com. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  22. "Turkey offers 'alternative' as energy hub for Europe - Latest News". Hürriyet Daily News. Retrieved 2022-04-13.
  23. "Regional Solutions to Regional Challenges in the Middle East?". Moshe Dayan Center for Middle Eastern and African Studies. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  24. "Republic of Turkey Ministry of Energy and Natural Resources - Natural Gas Pipelines and Projects". enerji.gov.tr. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  25. "New American company seeks to realize Trans-Caspian pipe dream | Eurasianet". eurasianet.org. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  26. "No magic tap for Europe to replace Russian gas via Turkey". Al-Monitor. Retrieved 2022-03-24.
  27. "Gas storage capacity to hit 11 bln cubic meters by 2023 - Latest News". Hürriyet Daily News. Archived from the original on 2021-12-26. Retrieved 2021-12-26.
  28. "Turkey further raises natural gas prices, says still provides 'cheapest gas in Europe'".
  29. "Doğalgaza konutlarda %35, elektrik üretiminde %44,3 sanayide %50 zam". BBC News Türkçe (in Turkish). Retrieved 2022-04-13.
  30. "Botaş hikes natural gas prices 20 pct - Latest News". Hürriyet Daily News. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  31. "Turkey to provide tax cuts for $10 bln gas field development". User Walls. 2022-04-20. Retrieved 2022-04-20.
  32. Coskun, Orhan; Caglayan, Ceyda (2022-04-15). "Soaring costs put Turkey's energy importer under pressure to hike prices". Reuters. Retrieved 2022-04-20.
  33. "Turkey strikes energy milestone as wind power output surges". Turkey strikes energy milestone as wind power output surges. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  34. Wallace, Joe (2021-11-29). "Turkey's Lira Crisis Exposes Reliance on Imported Energy". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  35. "Can Turkey benefit from Europe's quest to reduce Russian gas? - Al-Monitor: The Pulse of the Middle East". www.al-monitor.com. Archived from the original on 2022-03-09. Retrieved 2022-03-09.
  36. "Decarbonising EU-Turkey Energy Cooperation: Challenges and Prospects". Stiftung Wissenschaft und Politik (SWP). Retrieved 2022-04-21.
  37. "Thriving in the middle Turkey finds itself caught in between Russia and the EU. That's not such a bad place to be". Meduza. Retrieved 2022-04-20.
  38. "ExxonMobil, Qatar sign Cyprus gas deal despite Turkey opposition". France 24. 2021-12-10. Archived from the original on 2021-12-19. Retrieved 2021-12-19.
  39. Michele Kambas; Gavin Jones; Stephen Jewkes; Orhan Coskun. "Turkish blockade of ship off Cyprus is out of Eni's control: CEO". Reuters.
  40. Antonis Antoniou. "ExxonMobil Could Be In For A Naval Battle". Forbes.
  41. Council of the EU (2019-07-15). "Turkish drilling activities in the Eastern Mediterranean: Council adopts conclusions". Council of the European Union. Retrieved 2019-05-24.
  42. "Turkey-Russia Energy Cooperation on Natural Gas". Retrieved 2022-04-20.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.