Turkish Natural Gas Market

Turkish Natural Gas Market

Distribution of Turkey's Gas Imports Resources (2010 – 2013)
Source2010 (billion m3)2010 (percentage)2013 (billion m3)2013 (percentage)

Russia

17.576

46.2%

26.212

58%

Iran

7.765

20.4%

8.730

19%

Azerbaijan

4.521

11.9%

4.245

9%

LNG (Algeria + Nigeria + Spot)

8.174

21.5%

6.083

15%

Total

38.036

100.0%

45.269

100.0%

 

 

Gas Import Agreements of Turkey
AgreementDate of SignatureDate of OperationPerion(Years)Amount (Plateau-bcma)Date of Termination

Russia (West)

Feb 1986

Jun 1987

25

6

2011

Algeria (LNG)

Apr 1988

Aug 1994

20

4

2014

Nigeria (LNG)

Nov 1995

Nov 1999

22

1,2

2021

Iran

Aug 1996

Dec 2001

Dec 2001

10

2026

Russia (Blue Stream)

Dec 1997

Feb 2003

25

16

2028

Russia (West)

Feb 1998

Mar 1998

23

8

2021

Turkmenistan

May 1999

- - -

30

16

- - -

Azerbaijan

Mar 2001

Jul 2007

15

6,6

2022

 

 

 

Brief History of Natural Gas in Turkey

1970: First natural gas discovered in Kumrular area close to Kırklareli was started to be used in Pınarhisar Cement Factory in 1976.

 

1984: First agreement concerning natural gas import was undersigned by and between Turkey and USSR with the cabinet decision No. 84/8806.

 

1986: Natural gas export-import agreement for 25 years was undersigned by and between BOTAŞ (Turkey) and Soyuzgazexport (USSR) on 16th February 1986. The construction of the pipe line starting from Bulgarian border started on 26th October 1986, which was 842 km. long.

 

1988 – 1996: Natural gas use was introduced to houses and industry in Ankara in October 1988, Istanbul in January 1992, Bursa in December 1992, İzmit in September 1996 and Eskişehir in October 1996.

 

2001: Natural gas Market Law No. 4646 which was enforced on 2nd May 2001 aims to create a transparent and competitive natural gas market instead of the current monopolistic structure. Law also envisages;

 

  • Unbundling of BOTAŞ into 4 different corporate bodies as import, transmission, storage and sales,
  • Development of a competitive environment with the companies to access in the market,
  • And positive effects of such a competitive structure on the users.

 

2005: Bidding Procedure for the 1st Contract Release took place on 30th November 2005. The amount of 4 bcm of the contract, which was still ongoing with the Russian Federation, was successfully transferred to the private sector following the bidding procedure:

 

  • Shell Energy : 250 million m³
  • BosphorusGaz : 750 million m³
  • Enerco Energy : 2.500 million m³
  • Avrasya Gaz : 500 million m³

 

2007: Natural gas market in Turkey had a multi-player structure as Shell Energy actively started to operate on 19th December 2007.

 

2009: The share of the private sector increased to 1 bcm as BosphorusGaz started to operate on 3rd January 2009.

 

Source: General Directorate of Petroleum Affairs & BOTAŞ