(MENAFN- AzerNews) By News Center
The Turkiye Century in energy Summit was held on January 30 at
the Four Seasons Bosphorus Hotel under the auspices of the Ministry
of Energy and Natural Resources and under the leadership of
Albayrak Media.
Many popular names and companies from the energy sector attended
the summit with a keynote address by Minister of Energy and Natural
Resources Fatih Donmez.
The event was sponsored by RHG Enertuk Energy, Koza Gold
Operations, Turkish Airlines, Turk Telekom, Vakifbank, Vakif
Katilim, and Ziraat bank and supported by BOTAS, EnerjiSa, EPIAS,
ETI MADEN, Kalyon Enerji, Komur Isletmeleri A.S., Smart Gunes
Technologies. The summit was broadcast live on TVNET, TVNET Radio,
and the Yeni Safak YouTube channel.
On the fringes of the event, Turkiye signed a natural gas
purchase agreement with Oman that will be valid for the next 10
years.
According to Donmez, a delegation from the Turkish
government-owned energy company BOTAS traveled to Oman to finalize
the agreement under which Turkiye will purchase 1.4 billion cubic
meters (bcm) of gas from Oman each year.
Donmez said at the Century of Turkiye in Energy Summit that the
agreement with Oman also offers the possibility of being extended
further if necessary.
“At a time when the world, especially Europe, is suffering from
gas supply problems, Turkiye is taking all steps to become a gas
trade center,” he said.
Turkiye is almost entirely dependent on imports to cover its
energy needs, which leaves it vulnerable to rising costs that
skyrocketed following Russia's invasion of Ukraine. Domestic demand
has increased since the pandemic. Turkiye imports gas mainly from
Azerbaijan, Russia, and Iran, as well as liquified natural gas
(LNG) from Qatar, the USA, Nigeria, and Algeria.
After Russia, a major gas producer, invaded Ukraine in February
last year, the world gas markets were upended. In response, many
nations, including those in the European Union, imposed sanctions
on Russian exports, and Russia also stopped supplying Europe
through pipelines.
Meanwhile, Turkiye is set to start pumping the natural gas it
discovered in the Black Sea into the national grid by the end of
March. It has gradually discovered about 710 bcm of natural gas
since August 2020, which is estimated to have a market value of $1
trillion (TL18.81 trillion).
The current reserve, according to Donmez, is sufficient to meet
Turkiye's demand for 30 years; however, as the nation's hydrocarbon
explorations increase, this number may rise.
About 10 million cubic meters (mcm) of gas per day is expected
to be transferred in the initial phase, while the infrastructure
has been set up to enable this figure to peak at 40 mcm through
2026.
“The first phase of the Black Sea gas will come into operation
towards the end of March, and we will be able to meet one-quarter
of our gas needs at full capacity production from here,” Donmez
noted.
“This means that Turkiye's gas imports will have decreased by
one quarter.”
Turkiye's annual gas consumption rose from 48 bcm in 2020 to a
record 60 bcm in 2021. President Recep Tayyip Erdogan said it was
expected to stand at around 53.5 bcm in 2022.
Earlier estimates had put the figure at up to 63 bcm, but the
power generated from renewable resources this year drove the gas
consumption downward.
Donmez also declared that Turkiye's third floating liquefied
natural gas storage and regasification unit (FSRU) is projected to
arrive in Turkiye within a week and that the ship has taken its
first cargo and started sailing.
The ship will serve at the Saros FSRU terminal, which will also
give the country the flexibility to carry out LNG transport,
especially during the summer season when the demand to pump gas
into the system is low.
'With the Saros FSRU, we will add a new entry point to the
Thrace region, where consumption is high. More importantly, we will
become a more active player in the regional gas trade, especially
in the Balkans, in line with our gas hub target,' Donmez
suggested.
The first step, he said, was taken with Bulgaria in this
context, as the agreement includes an annual gas supply of
approximately 1.5 bcm to Bulgaria until 2035, corresponding to 30
percent of the country's annual gas consumption.
The agreement between Bulgaria's state gas company Bulgargaz and
BOTAS, signed earlier this month, will give Bulgaria access to
Turkiye's gas network and LNG terminals to help bring in
supplies.
'In addition to Bulgaria, we are carrying out similar processes
with North Macedonia, Romania, and Moldova,' Donmez said.
In October, Russian President Vladimir Putin proposed setting up
a gas hub in Turkiye following explosions that damaged Russia's
Nord Stream gas pipelines under the Baltic Sea.
Putin suggested developing transshipment and exchange terminals
for Russian gas, potentially making Turkiye a significant center
for sales of Russian gas to third countries.
Erdogan backed the idea and the two countries instructed
authorities to work on a roadmap, which is expected to be announced
soon.
Donmez also said Turkiye would hold a natural gas summit on
February 14-15 to bring together gas supplier countries and
Europe's consumer countries in Istanbul.
'We will bring together supplier countries from the Middle East,
Mediterranean, Caspian, and Middle Asia with consumer countries
from Europe,' the minister noted.
Turkiye has the infrastructure and experience in gas trade and
authorities are taking steps for it to be a hub where regional
benchmark prices are set, Donmez said.
'Our target is to bring together supplier and consumer countries
and become a gas-trading center where the benchmark price of gas is
set,' he added.
Along with the energy ministers, the summit is expected to host
high-level representatives of public institutions and
organizations, the private sector, and international energy
organizations.
'The event will discuss the impact of global developments on the
energy sector, changes in supply and demand and pricing, and global
supply security issues,' Donmez concluded.
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