Turkish Forum English

Tag: Russian Gas

  • Turkey wants more Russian gas

    Turkey wants more Russian gas

    4highres_00000401589303

    Photo: EPA

    Russia and Turkey are ready to begin talks about an increase in Russian export gas supplies. For the time being, under discussion are additional 3 billion cubic metres of gas annually. However, experts are sure that the consumption of fuel in Turkey as well as the demand for Russian gas will grow in the country in the coming few years.

    Turkey has limited reserves of natural gas. Today Turkey is spending billions of dollars on prospecting for new gas deposits in the south-east of the country and in the Black Sea. 17 new oil and gas deposits have already been discovered. Some experts say that there are big reserves of shale hydrocarbons in Turkey. In any case, Turkey can effectively handle only the natural gas it imports. In compliance with the Russian-Turkish contract, the Russian gas giant Gazprom supplies nearly 26 billion cubic metres of gas to Turkey annually. In the future Turkey would like to receive from 29 to 30 cubic metres of gas per year. Gas consumption in the country is growing. Russian fuel is transported to Turkey through the Western Corridor and the Blue Stream gas pipelines. If Turkey wants, their capacity could be increased, Head of the Analytical Research Department at the URALSIB Company Alexander Golovtsov says.

    “Turkey’s population is growing. Therefore, gas consumption in the country will grow too. Hence, unless the global situation with Iran is settled and torrential gas flows start coming from it to Turkey, the demand for Russian gas will grow, and with the existing growth rates another 5 years will be needed to fill the Blue Stream gas pipeline with gas.”

    Russia is not the only supplier of natural gas to Turkey, the partner of the consulting RusEnergy Company Mikhail Krutikhin says.

    “Another stage of the gas project leading to Azerbaijan will be launched by 2018, and the volume of the pumped Azeri gas to Turkey will increase as well. Besides, Turkey plans to receive gas from Iraqi Kurdistan, in addition to the liquefied natural gas (LNG). Although Russia is Turkey’s very important partner, it is not its only partner.”

    Thus, Turkey is trying to receive the maximum benefit from its geographic position – between the countries involved in gas extraction. Besides, Turkey holds a monopoly on the transit of natural gas because it has established its control over the Black Sea’s outlet to the Mediterranean Sea, Mikhail Krutikhin said.

    “Turkey does not let large gas carriers to enter the Black Sea. Thus, the capacity of the Bosporus Strait and the Dardanelles hamper Ukraine’s plans to build a terminal for the import of liquefied natural gas.”

    In fact, Russia and Turkey have similar views regarding gas issues. Russia’s Gazprom is seeking to diversify its export flows and to sell its gas to various countries. The Turkish market, which is more dynamic than the European market, remains more attractive. And as regards Turkey, it is trying to develop its own system of gas import, buying gas from numerous buyers – a little at a time, aiming to become dependent on nobody. But even with the existing arrangement, Russian gas pipelines remain the most effective mechanism.

    via Turkey wants more Russian gas: Voice of Russia.

  • Turkey Approves Russian Gas Plan

    Turkey Approves Russian Gas Plan

    By JACOB GRONHOLT-PEDERSEN

    WO AI290 SOUTHS NS 20111228182104

    MOSCOW—Russia secured approval from Turkey on Wednesday to build the South Stream gas pipeline across the Black Sea, removing the last major obstacle to proceed with a project that could increase Europe’s dependence on Russian natural-gas supplies.

    The move heats up the battle between Russia and the European Union over competing pipelines, especially the European Union-backed Nabucco project, and increases pressure on Ukraine to give Moscow control of its pipeline system.

    [SOUTHSTREAM]

    Turkey’s approval, given by Energy Minister Taner Tildiz during talks with Russian Prime Minister Vladimir Putin in Moscow on Wednesday, had been a stumbling point for Russia to proceed with the offshore part of the South Stream project.

    Russian state gas giant OAO Gazprom ships most of its gas exports to Europe via Ukraine, but supply disruptions in recent years due to pricing disagreements between the two countries have led Russia to seek to bypass Ukraine and promote new pipelines such as South Stream.

    Analysts say progress on South Stream increases pressure on Ukraine. Kiev is pushing for cheaper gas in order to balance its budget.

    But in exchange for cheaper gas, Moscow is aiming to gain control of Ukraine’s pipeline system.

    South Stream is envisioned to carry as much as 63 billion cubic meters of Russian gas under the Black Sea to Bulgaria, Serbia and Hungary before branching out to Western Europe.

    Gazprom, the main shareholder in the project and a major supplier of gas to Europe, said Turkey’s approval means South Stream will start operating according to plan by the end of 2015. ENI SpA of Italy, BASF SE of Germany and Électricité de France SA are minority partners in the project.

    “This is a very good and positive signal for all of us, which undoubtedly will provide stability in energy supplies to the European market,” said Mr. Putin.

    A European Commission spokesman played down the impact of the South Stream agreement, which he said “would not affect the existing framework and commitments.”

    European officials say that, unlike Nabucco, South Stream hasn’t reached the project stage yet.

    Nabucco is the most ambitious and expensive of four competing proposals to take gas from Azerbaijan, and possibly eventually from other countries, into the European Union. But Nabucco’s estimated cost is a potential deterrent for developers of the giant gas field, which lies under the Caspian Sea. A decision on the winning project is expected to be announced in the first half of 2012.

    Gazprom has insisted South Stream will be built regardless of talks with Ukraine, but Gazprom Chief Executive Alexei Miller said earlier this week that realization of South Stream depends on the continuing talks with Kiev.

    “This all looks like negotiating tactics, as Russia prepares for a new round of talks with Ukraine,” said Johannes Benigni, managing director at Vienna-based research consultant JBC Energy. “I don’t think they need to build South Stream at all.”

    Last month, another transit country, Belarus, sold its gas-pipeline operator Beltransgaz to Gazprom in exchange for a major discount on gas supplies. Ukraine is likely to face a similar situation, Mr. Benigni said, adding that with a $15.5 billion price tag on South Stream it would make more sense for Gazprom to invest its money in Ukraine.

    The news on Russian progress on South Stream also comes as the Nabucco project, which seeks to carry gas from Azerbaijan and other Central Asian countries to Europe, has faced hurdles. The EU has promoted Nabucco to reduce the bloc’s dependence on Russia but suffered a setback as Azerbaijan recently said it plans to build its own pipeline through Turkey that would run parallel to Nabucco’s planned route.

    South Stream has failed to gain backing in Brussels and has still to get exemptions from new EU rules known as the Third Energy Package. The legislation is pushing for more competition in Europe’s energy market and has sparked tensions with Russia as Moscow believes they undermine its own investments in the 27-nation EU, including South Stream.

    —Laurence Norman and Alessandro Torello

    via Turkey Approves Russian Gas Plan – WSJ.com.

  • Turkey breaks Russian gas contract

    Turkey breaks Russian gas contract

    Turkish government cancels a contract to buy six billion cubic metres a year of natural gas ‎from Russia after failing to win a discount

    AFP , Saturday 1 Oct 2011

    Turkey has revoked a contract to purchase six billion cubic metres a year of natural gas ‎from Russia, its main supplier, after failing to win a discount, Energy Minister Taner ‎Yildiz said Saturday.

    ‎”The contract on the western routing has been wound up because the request for a lower ‎price has been refused,” Anatolia news agency quoted him as saying.

    Yildaz had threatened Thursday to end the contract under which Turkey imports gas ‎from Gazprom Export, a subsidiary of the Russian gas giant Gazprom, via a pipeline ‎passing through Ukraine, Romania and Bulgaria.

    Turkey imported 18 billion cubic metres of gas from Russia last year, about 60 percent ‎of its total domestic gas consumption.

    Yildiz said Thursday that natural gas input prices had increased by around 39 percent ‎over the last 29 months, adding that this would prompt Turkey to revisit each and every ‎expiring contract one by one.

    The agreement on the western pipeline, which feeds Turkey’s biggest city of Istanbul, ‎was signed in 1986 and was due to expire at the end of this year.

    Other Russian gas is supplied by the South Stream pipeline passing under the Black Sea.

    Yildiz said Saturday that the decision to break the contract did not mean that Russian gas ‎supplies would end or cause any problems between Ankara and Moscow, whose ‎‎”strategic relationship cannot be affected by a few contracts.”‎

    via Turkey breaks Russian gas contract – Economy – Business – Ahram Online.