Will Turkey get rid of energy dependence?

Will Turkey get rid of energy dependence?

Baku, Azerbaijan, Jan. 11

By Rufiz Hafizoglu - Trend:

Turkey began to actively work in order to get rid of energy dependence and diversify natural gas sources since the middle of last year. The deterioration of relations with Russia has pushed Ankara to actively seek alternatives to Russian gas as well.

One such alternative, according to experts, could be natural gas from Iraq (Kurdish autonomy), which will start to be delivered from 2018.

But it is unlikely that the Kurdish gas, if Ankara starts to receive it, will become an alternative to the Russian gas.

Ankara intends to deliver gas from Iraq in the amount of 10 billion cubic meters, while since 2020, the volumes of supplies will have to increase to 20 billion cubic meters.

A tender will be held Feb. 9, 2016 in Ankara for constructing a new gas pipeline between Turkey and Kurdish Regional Government (KRG). Both local and foreign companies are allowed to participate in the tender. The pipeline's length will be 181.5 kilometers.

KRG and Ankara signed a contract for 50 years in 2013, to supply natural gas to Turkey. But for the investing in any project political stability is needed - something that is currently absent in Southern Turkey.

Given this, it is unlikely that foreign companies will participate in the tender for construction of a new gas pipeline, however, it doesn't mean that the project won't be realized. Most probably, only local companies will participate in the tender.

Meanwhile, according to Russian gas giant "Gazprom", there are two contracts between it and Turkish Botas - one is for the supply of up to eight billion cubic meters of gas through the Trans-Balkan route, the second via the "Blue Stream" - up to 12 billion cubic meters. The validity of the first contract is through 2022, the second - at least until 2028.

In addition, up to four billion cubic meters of Russian gas through the "Blue Stream" are purchased by private traders (as part of the liberalization, a part of volumes has been re-registered on them). These agreements were signed for 20 years.

Also, a number of traders concluded long-term contracts with "Gazprom Export" to import a total of six billion cubic meters of gas until 2042 (instead of the first contract for the supply of Russian gas to Turkey, which expired in 2012).

Traditional level of volumes subject to the "take or pay" rule is 80 percent of the contracted volumes. Thus, at least until 2022, Turkey is obliged to buy 24 billion cubic meters of Russian gas and 17.6 billion cubic meters until 2028.

However, according to Botas, Russia is committed to annually supply gas to the country amounting to 20 billion cubic meters. The first contract to supply Turkey with 16 billion cubic meters of Russian gas was signed in 1997, and it expires in late 2025. The second contract, for the supply of four billion cubic meters of gas, was signed in 1998 and expires in 2021.

In 2014, Turkey was the second largest importer of Russian gas after Germany - Ankara purchased 27.3 billion cubic meters of gas from Gazprom.

Turkey consumed 52 billion cubic meters (bcm) of gas in 2015, according to the Office of Energy Market Regulation (OEMR), and the annual increase in gas consumption is five percent in Turkey.

That is, no matter how Ankara tries to get rid of energy dependence, due to increased consumption of natural gas in the country, it is unlikely to be succeed. The maximum that Ankara will be able to achieve - is to diversify sources of natural gas.

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

Subscribe to Trend in Google News! Subscribe
Iranian president to visit Ardabil Province on border with Azerbaijan
Iranian president to visit Ardabil Province on border with Azerbaijan
Iran, Kazakhstan urged to set out a new framework for bilateral ties
Iran, Kazakhstan urged to set out a new framework for bilateral ties
India: Adani Ports to shun cargo from Afghanistan, Pakistan, Iran
India: Adani Ports to shun cargo from Afghanistan, Pakistan, Iran
Loading Bars
Latest
Trade turnover between Turkmenistan, Uzbekistan grows sharply
FIMI buys Ashot Ashkelon stake from Elbit Systems for $88m
Azerbaijan confirms 2,005 more COVID-19 cases, 1,011 recoveries
Uzbek Central Bank reveals data on total liabilities of banks
Iran sees decrease in load/unload operations in Astara port
Kremlin hopes for EU certification of Russia's vaccine
Bahar Azadi gold coin price begins to rise in Iran
India enters 100-crore vaccine club to fight Covid, PM Modi says nation scripts history
Hungarian University Forum and alumni meeting in Baku
Central Bank of Iran shares data on loans issued for trade sector
Turkmenistan doubles greenhouse tomato exports to Russia
Turkey's position on opening Zangezur corridor - unchanged – President Erdogan
Iran reveals COVID-19 data for October 21
Georgia shares data on its top goods exported to Russia
Iran sees increase of cargo loading/unloading at its Charak port
Turkish President to attend opening of Azerbaijan’s Fuzuli International Airport
India offered humanitarian assistance to Afghans, Taliban say after 2nd meeting
'Turkic World' project aims to meet information demand - Turkish official
First VP Mehriban Aliyeva shares footages from her visit to liberated Zangilan (VIDEO)
South Pars field revenues account for over half of Iran's state budget
Turkmenistan looks to launch new project jointly with UNDP, WB
Central Bank of Iran announces amount of loans issued in housing, construction sector
Turkmenistan interested in political stability, security in Afghanistan – Deputy FM
Iran’s CBI reveals amount of loans issued for industrial and mining sectors
India achieves the major milestone of ‘one billion’ vaccinations
Volume of loaded/unloaded cargo in Iran’s Fereidoonkenar port down
Ruling parties of Azerbaijan, Turkey to hold meeting
Iran records increase in exports to Uzbekistan
Iranian president to visit Ardabil Province on border with Azerbaijan
Uzbekistan reveals total assets for banks with/without state share
Every martyr will live forever in hearts of Azerbaijani people - President Ilham Aliyev
SOCAR discloses oil transportation volume via Baku-Supsa
Our people did not bow down during occupation, did not forget about their native lands - Azerbaijani president
Georgia-Russia trade turnover increases in 9M2021
Azerbaijan's military units in Kalbajar, Lachin undergo inspection amid coming winter (PHOTO/VIDEO)
Georgia shares data on COVID-19 cases for October 21
SOCAR’s capital investment plan fulfilled by over 63%
SOCAR reveals volume of electricity production, consumption
Iranian currency rates for October 21
Tesla's German plant hits snag as public consultation repeated
Iranian startup companies receive more loans from local banks
Activities in Iran’s Genaveh port increase
Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23
Pfizer vaccine very effective against Delta variant in adolescents in Israel
Iranians detained in Azerbaijan due to falsified of customs documents sent back to Iran
Exports of Iran to Tajikistan soar
Iran begins new round of power plant overhaul operations
Zangilan will become transport and logistical center of our country - President Aliyev
SOCAR fulfills oil refining plan by over 103%
Gas could lose market share to coal this winter
Russia sees record high of 36,339 daily COVID-19 cases, crisis center says
Does Europe have enough gas stocks to get through winter?
Azerbaijan considering proposals for building new modern gas-turbine power plant
Azerbaijan announces time of commissioning floating solar power plant
Azerbaijan to develop atlas of renewable energy potential
Kazakhstan eyes attracting investments in processing industry
Turkey shares data on number of cars transshipped via local ports in 9M2021
Iran to use alternative fuel for power plants
Iran shares data on grain imports from Russia
Azerbaijan updates on renewable energy projects with ACWA Power, Masdar
Iran looking to expand export to neighboring countries - President Raisi
Amount of loans issued by Iranian banks continue to grow
Iran provides several loans in agricultural sector
Oil mixed, but solid U.S. demand underpins sentiment
1 dead, 33 injured in restaurant explosion in northeast China
Iran, Kazakhstan urged to set out a new framework for bilateral ties
Number of beneficiaries receiving subsistence allowance increases in Georgia
ADB to prioritize Uzbekistan’s transformation to market-based economy through reforms (Exclusive)
COVID-19: New cases slightly up in Kazakhstan
India for including TRIPS waiver proposal in WTO’s response package
U.S. FDA clears Moderna, J&J COVID-19 boosters, backs use of different vaccine for boost
India plans to send 50,000 MT of wheat, medical aid to Afghanistan: Report
17 killed in car crash in Egypt
WHO Director General has lauded India's Covid vaccination efforts: Health Minister
Canada to unveil vaccine passport plans Thursday
Covaxin instilled self-confidence: ICMR chief
India: Adani Ports to shun cargo from Afghanistan, Pakistan, Iran
U.S. readies plan to vaccinate kids ages 5-11 against COVID-19
India, Israel agree on mutual recognition of Covid-19 vaccination certificates
Chronicles of Victory: President Ilham Aliyev interviewed by Japan’s Nikkei newspaper on October 21, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 21, 2020
Trilateral meeting of Deputy PMs of Azerbaijan, Armenia and Russia held in Moscow
20 October will remain eternal Victory Day for people of Zangilan and for all our people of Azerbaijan - President Ilham Aliyev
First VP Mehriban Aliyeva shares footages from her visit to liberated Zangilan with President Ilham Aliyev (VIDEO)
Kazakh and Russian PMs hold talks
SOCAR AQS, Naftogaz ink MoU for dev’t of onshore, offshore technologies
After long break, after 27 years of Armenian occupation, Zangilan finally returned home - Azerbaijani president
Mikheil Saakashvili charged with illegal border crossing
We started process of suing foreign companies, which illegally exploited Vejnali gold deposit - president
Entire infrastructure will be built in Zangilan in parallel with protection of nature - President Aliyev
Iran's Energy Exchange announces products to be on sale on October 23
Certain contracts signed in Iran on manufacturing of spare car parts
Recent events related to opening of Zangazur corridor show that we are achieving what we want - Azerbaijani president
We strengthened our army, our economy, enhanced our international standing - President Aliyev
This is our common victory, victory of Azerbaijani people - President Aliyev
We will try to start relocating local residents to Zangilan early next year - President Aliyev
Turkey unveils number of ships received at local ports in September
Leading private Uzbek banks in terms of deposits
Funds allocated to draw up master plan for liberated Zangilan city
Leading Uzbek banks with state share in terms of deposits
All news