Iraqi gas vital for Ankara, expert says

Baku, Azerbaijan, Jan. 8

By Rufiz Hafizoglu - Trend:

Gas that will be supplied to Turkey from Kurdistan Regional Government (KRG) in northern Iraq is vital for Ankara, researcher of the Turkish Foundation for Political, Economic and Social Research (SETA) Salihe Kaya told Trend Jan. 7.

Against the background to diversify natural gas supplies, KRG in northern Iraq can be an important source of supply for Ankara, according to Kaya.

For Ankara, natural gas from the KRG in northern Iraq will cost much cheaper than gas from other sources, Kaya said.

It was reported earlier that the tender for constructing a new gas pipeline between Turkey and the Kurdistan Regional Government (KRG) in Northern Iraq will be held Feb.9, 2016 in Ankara.

Both local and foreign companies can participate in the tender. The winner will build the new gas pipeline for 720 days. The length of the pipeline will be 181.5 kilometers.

The volume of the natural gas reserve on the territory of KRG is 5 trillion cubic meters, according to Iraqi media.

KRG and Ankara signed a contract for 50 years in 2013, to supply natural gas to Turkey.

It is expected that after completing the construction of the new gas pipeline, the Kurdistan Regional Government in Northern Iraq will deliver 10 billion cubic meters of gas to Turkey. The volume of gas supplied from Iraq to Turkey will reach 20 billion cubic meters by 2020.

Turkey imports 6.6 billion cubic meters of gas per year from Azerbaijan on the basis of a 'take or pay' contract. Turkey also buys 9.6 billion cubic meters of gas from Iran on the basis of the contract that is valid till July 2026.

Ankara also has agreements with Algeria (from 1988 to October 2024) and Nigeria (from 1995 to October 2021) for supplying 4.4 billion cubic meters and 1.3 billion cubic meters of liquefied gas per year, respectively.

There are two contracts between the Russian company and Turkey's Petroleum Pipeline Corporation (BOTAS), according to Gazprom. These contracts envisage supplying up to 8 billion cubic meters and around 12 billion cubic meters of gas via the Trans-Balkan route and Blue Stream, respectively.

The first contract is valid till 2022 inclusive, while the second contract will remain in force at least till 2028. Moreover, private traders buy up to 4 billion cubic meters of Russian gas via the Blue Stream. These agreements were signed for a period of 20 years. A number of traders have signed long-term contracts with Gazprom Export on importing a total of 6 billion cubic meters of gas till 2042 to substitute the very first contract for supplying Russian gas to Turkey which expired in 2012.

The traditional volumes of gas subject to the "take or pay" rule account for 80 percent of the contracted volumes. Thus, Turkey is obliged to buy 24 billion cubic meters of Russian gas by 2022 and 17.6 billion cubic meters by 2028.

Nevertheless, Russia undertakes to supply 20 billion cubic meters of gas to Turkey per year, according to BOTAS. The first contract for exporting 16 billion cubic meters of Russian gas to the country was signed in 1997 and expires in late 2025. The second contract for delivering 4 billion cubic meters of gas was signed in 1998 and will remain in force till 2022.

Turkey was the second largest importer of Russian gas after Germany in 2014: Ankara purchased 27.3 billion cubic meters of gas from Russia's Gazprom company.

Turkey has been importing 25-27 billion cubic meters of gas from Russia in recent four years. It accounts for 55-58 percent of the country's gas consumption.

The total volume of gas consumption in Turkey is 48 billion cubic meters.

---

Rufiz Hafizoglu is the head of Trend Agency's Arabic news service, follow him on Twitter: @rhafizoglu

Subscribe to Trend in Google News! Subscribe
European Hydrogen Backbone joined by six more companies
European Hydrogen Backbone joined by six more companies
Swiss Expo inks solar power purchase agreement in Poland
Swiss Expo inks solar power purchase agreement in Poland
EBRD to allocate loan for Turkey’s renewable energy sector
EBRD to allocate loan for Turkey’s renewable energy sector
Loading Bars
Latest
Azerbaijani State Border Service to purchase building materials via tender
Iran’s CBI discloses data on balance of bank loans
Uzbek Statistics Committee reveals amount of construction work done in 2021
Azerbaijan's minister of health talks quarantine regime
Turkmen garment factory ramps up production
Iran reveals COVID-19 data for January 20
IEA expects Azerbaijan to increase oil output in 2022
Turkish MoD shares publication on anniversary of January 20 tragedy in Azerbaijan
Work related to Armenia's environmental crimes in Azerbaijan's Karabakh in progress - ministry
Iran’s Bahar Azadi gold coin price continues to rise
Turkish, Armenian special reps to discuss confidence-building measures - FM
IEA evaluates Azerbaijan’s OPEC+ compliance
Kazakhstan crude and condensate production estimated to go up in 2022
European Hydrogen Backbone joined by six more companies
Swiss Expo inks solar power purchase agreement in Poland
Кazakh Electricity Grid Operating Company opens tender to buy spares for vehicles
Turkmenbashi refinery opens tender to purchase necessary equipment
EBRD to allocate loan for Turkey’s renewable energy sector
Azerbaijan develops action plan to provide liberated areas with internet
Georgia shares data on trade turnover with Azerbaijan
Russian MFA talks about expansion of transport corridors within GUAM
Recognise ‘Hinduphobia’ and violence against Buddhists, Sikhs too: Indian envoy to U.N.
Work related to Armenian crimes against Azerbaijanis continues - Prosecutor General
Momentum in India's favour, need to prevail over COVID-19: Deloitte CEO on economic development
Central Bank of Iran shares data on exchange of bank checks countrywide
Proud to hold TEKNOFEST int'l aviation, space, technology festival in Azerbaijan - Turkish Baykar Makina
EU special rep for South Caucasus to visit Azerbaijan
Iran boasts potential to vastly increase exports to Russia
India extends suspension on international flights till February 28
Kazakh Gas Processing Plant opens tender to buy electric engines
Companies from UAE, Netherlands to build solar photovoltaic stations in Uzbekistan
Israel signs $3.4 bln submarines deal with Germany's Thyssenkrupp
Azerbaijan eyes holding clinical trials of Turkovac COVID-19 vaccine soon
Turkmen state concern to purchase material and technical resources via tender
Georgia names main goods in domestic exports in 2021
Azerbaijani minister talks potential omicron infection rate among local COVID-19 patients
Azerbaijani people honor memory of victims of January 20 tragedy (PHOTO/VIDEO)
Iranian banks issue big loans in services sector
UN Resident Coordinator in Azerbaijan expresses condolences in connection with January 20 tragedy
Ambassador of Kazakhstan to Azerbaijan honors memory of victims of January 20 tragedy (PHOTO)
Uzbek association signs agreement with Russian enterprises to develop textile industry
Inflation accelerating worldwide: How Azerbaijan responds?
Azerbaijan honors memory of martyrs of January 20 tragedy by minute of silence (PHOTO/VIDEO)
Turkish embassy in Azerbaijan shares publication on 32nd anniversary of January 20 tragedy
Turkmenistan's TML eyes co-op with Ukraine's Smart Maritime Group
Uzbekistan to strengthen cooperation with Saudi company in energy field
Leadership of Azerbaijani MoD visits Alley of Martyrs (PHOTO)
Georgia’s revenues from tourism to surge in 2022 – Galt & Taggart
Iran provides several loans in trade sector
January 20 events strengthened resolve of Azerbaijani people for independence - aide to president
Embassy of Kazakhstan in Azerbaijan issues statement on 32nd anniversary of January 20 tragedy
Georgia publishes COVID-19 data for January 20
This irresponsible behavior of French FM also undermines bilateral international obligations of France - Azerbaijani MP
Uzbek Thermal Power Plants JSC to implement major investment projects
Kazakhstan increases production and import of kerosene for 10M2021
Iran reaches significant agreements with Russia in energy sector – minister
Valiant Azerbaijani people stood up for independence on January 20, 1990 - Turkish president's adviser
Loan portfolio of Azerbaijani non-bank credit organization more than doubles
Azerbaijan Transport Agency talks number of passengers on bus trips to liberated areas
Armenia must properly assess new geopolitical realities in region – Aide to Azerbaijani President
Russian Economy Ministry talks about implementation of joint transport projects with Azerbaijan
Georgia to attract new investments in energy sector – minister
Kazakh Samruk-Kazyna, Russian companies to invest in chemical projects
CNPC branch in Turkmenistan opens tender for repair of compressors
Uzbekistan shares domestic COVID-19 data for January 19
Iran's Energy Exchange announces products to be on sale on January 22
Iran establishes container shipping route from Chabahar port to Indian ports
President Ilham Aliyev and First Lady Mehriban Aliyeva visit Alley of Martyrs on 32nd anniversary of 20 January tragedy (PHOTO/VIDEO)
President Raisi's visit to Russia - fundamental change in Iran's international relations - Iran's VP
Azerbaijani oil prices increase
Iran sees increase in exports to Oman
Oil prices hover around 2014 highs, supported by supply concerns
Higher oil revenues to boost Turkmenistan's GDP growth - Fitch
Iranian currency rates for January 20
Azerbaijan's FM meets with head of IAEA in Vienna (PHOTO)
Azerbaijan expects another wave of COVID-19 pandemic - Health Committee of Parliament (VIDEO)
Azerbaijan's Mediation Council, MUSIAD sign cooperation protocol (PHOTO)
ITFC extends $15M line of financing facility to Uzbek Industrial and Construction Bank
ITFC extends US$ 15 Million Line of Trade Financing Facility to Invest Finance Bank
Switzerland recognises Georgian Covid-19 certificates
Economy min: Facilitating banking transactions part of Iran-Russia agreements
Turkey expects coronavirus cases to peak in February
Number of COVID-19 cases in Kazakhstan tops 1,100,000
Chinese bridge at Pangong Tso nears completion, show satellite images
Beijing city raises vigilance as local COVID cases tick higher before Olympics
Over 300 mln COVID-19 cases confirmed all over world, WHO says
U.S., UK launch talks to resolve steel, aluminum dispute
India should adopt risk-based approach not blanket bans to contain Covid - WHO India head
Turkey, UAE sign FX swap deal worth $5 billion
Covid-hit microfinance industry in India seeks higher credit guarantee scheme
Excellent Iran-Russia ties serving strategic goals - Iranian president
Turkey soon to leave currency volatility behind: Erdogan
Cryptocurrency Bill in India unlikely to be introduced in upcoming Budget session
Head of EU delegation expresses condolences to Azerbaijan on occasion of January 20 tragedy
First Vice-President Mehriban Aliyeva makes post on 32nd anniversary of 20 January tragedy (PHOTO)
Azerbaijan commemorates 32nd anniversary of 1990 'Black January' tragedy
Organization of Turkic States makes post in connection with January 20 tragedy
UK shares experience in mine action with Azerbaijan - Ambassador
Azerbaijan adheres to start of delimitation of border with Armenia process without any conditions - minister
PM Johnson drops COVID rules in England
All news