Turkish Natural Gas Market
Distribution of Turkey's Gas Imports Resources (2010 – 2013) | ||||
Source | 2010 (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 | |||||
Agreement | Date of Signature | Date of Operation | Perion(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