Turkey is in talks with Azerbaijan and Russia on new contracts and new volumes of gas imports – Bayraktar

Turkey sees opportunities for private business due to the end of a number of contracts for gas imports, Deputy Energy Minister Alparslan Bayraktar said in a video message to the participants of the LNG conference in Tokyo.

“Despite the volatility of the gas market, 2021 is a very important year for the Turkish gas market. At the end of the year, contracts for the import of large quantities of gas expire. In the process of renewing these contracts, we would like more competitive, more flexible and more creative gas purchase agreements. There is a window of opportunity for the private sector to enter the gas market as importers or traders, ”he said.

Earlier it was reported that in 2021 a part of the contracts for the supply of gas from Gazprom to the republic (via the so-called “western” route, now it is “Turkish Stream”) expires. This is 8 billion cubic meters. m of gas, 4 billion cubic meters. m of which falls on the state-owned company Botas, and another 4 billion cubic meters. m were resold to private importers.

The deputy minister also said that Turkey plans to launch a third floating regasification and storage unit (FSRU) in 2022. He recalled that Turkey is one of the 10 largest importers of liquefied natural gas (LNG) in the world, already has two LNG receiving terminals and two FSRUs.

According to the Deputy Minister, Turkey is increasing imports of LNG, in particular, in 2020, the country imported 15.1 billion cubic meters of gas in the form of LNG, which amounted to 31.3% of total imports.

“We intend to increase the capacity of underground gas storage facilities (UGS) from 4.5 to 11 billion cubic meters. meters of gas by 2023, ”Bayraktar also said.

The deputy minister also said that on October 1, gas futures began trading at the Istanbul Energy Exchange. “We believe that with such instruments, competition and transparency will increase in order to attract more investors to the LNG market,” he said.

Turkey consumes about 50 billion cubic meters. m of gas per year, but in 2021 consumption is expected to reach a record – over 60 billion cubic meters. m against the backdrop of growing demand from the energy sector.
For seven months of 2021, consumption increased by 14% – up to 31 billion cubic meters. According to the BP statistical directory, the historical maximum gas consumption in the country was recorded in 2017 – 51.6 billion cubic meters. m.

“High gas prices affect energy supplies. Last year we were able to get more LNG (15 billion cubic meters – IF), because there were competitive prices, this year will be really difficult, but we are negotiating with our current suppliers, this is Azerbaijan, Russia, about new contracts and volumes, because some of the contracts with Gazprom will expire at the end of this year. The negotiations are going well, ”Bayraktar said earlier.

Source: interfax.az