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Prime Minister's advisor: Refusing from Russian gas import not to affect Turkey's economy

Oil&Gas Materials 4 October 2011 19:27

Azerbaijan, Baku, Oct. 4 /Trend, A.Tagiyeva/

Turkey's refusal to prolong the agreement on deliveries of Russian gas through the "western route" will not affect the country's economy and energy sector will not suffer from it, Turkish Prime Minister's advisor on Eurasia Geybulla Ramazanoglu said.

"The Turkish authorities have taken necessary measures to prevent the crisis in the economy," Ramazanoglu told Trend by telephone from Ankara on Tuesday.

Last week Botas informed Gazprom that it will end its contract with the Russian energy giant for the delivery of natural gas to Turkey via the western route. The Turkish company's letter says that Russia has failed to take steps that would satisfy the Turkish side. Proceeding from this, Botas has officially informed Russia that it will not extend the agreement. Turkey had insisted on a 20 percent gas price reduction.

Turkey is the second largest importer of Russian supplies of hydrocarbon resources. Along with the western route, it gets gas via Blue Stream pipeline.

Turkey has three contracts on gas supplies with Russia. The contract signed with Russia in 1986 to supply six billion cubic meters gas expires in December. Turkey also has two contracts with Russia to supply 16 and 8 billion cubic meters of gas annually, signed in 1997 and 1998.

According to Ramazanoglu, the agreement on Russian gas supplies was signed 25 years ago, when Turkey had no alternatives. Now, however, Turkey does not need the volumes of gas received through the "western route", said Ramazanoglu.

"Turkey had annual compensation for unused gas. In such circumstances, the purchase of Russian gas, but still at an increased price, was disadvantageous for the Turkish side," Ramazanoglu said.

He said if necessary, the Turkish government will consider increasing the volume of natural gas purchases from other countries.

According to the BP Statistical Review of World Energy, in 2010, Turkey imported through pipelines from Azerbaijan 4.35 billion cubic meters of gas, Russia - 16.64 billion cubic meters, and Iran - 7.77 billion cubic meters. In addition, Trinidad and Tobago supplied to Turkey 0.26 billion cubic meters of liquefied natural gas (LNG), Belgium - 0.08 billion cubic meters, Norway - 0.26 billion, Algeria - 3.87 billion, Egypt - 0.27 billion, Nigeria - 1.26 billion and Qatar - 1.92 billion cubic meters of LNG.

The total gas imports by Turkey in 2010 amounted to 36.68 billion cubic meters at the demand of 39 billion cubic meters. Last year, gas consumption in the domestic market in Turkey has grown by 9.2 percent compared to 2009.

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