January 13th, 2016
Turkish state importer Botas hopes to receive more gas from the Shah Deniz Phase 1 project by the end of 2017 to compensate for lower intake in the past, Zaman newspaper reported on January 12.
Botas pays before delivery from the Shah Deniz consortium, set at 6.6bn m³/yr. Over the past years, Azerbaijan has exported less than this volume owing to a lack of pipeline capacity inside Turkey. A gas compressor station was only installed in Erzurum in 2014.
The report says that the terms of the take or pay clause mean the total debt due to Azerbaijan for gas that Botas did not take – but had agreed to – was TL205.6mn lira ($114.9mn) as of the end of 2012 and TL687 million by the the end of 2013. This had risen further to TL892.9mn by the end of 2014.
The report added that Botas has until 2017 to even out its contractual offtake with its actual offtake.
In the first 11 months of last year Azerbaijan exported 6bn m³ of Shah Deniz gas, about 1.6% more than in the same period in 2014, operator BP told Natural Gas Europe December 25. The year before, exports from the field were 6.5bn m³.
The minimum annual volume of gas, which Turkey has to buy as a part of the agreement, is 5.2bn m³. Turkey has to pay $45/’000m³ for the gas it was contracted to take delivery of, but could not do so owing to the lack of capacity.
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December 29, 2015
The state-owned Turkish Pipeline Corporation (BOTAŞ) will open a tender on Feb. 9 for the construction of the Şırnak Natural Gas Pipeline, which will integrate the natural gas of northern Iraq into Turkey's gas grid, the company said on Monday.
According to BOTAŞ's statement, the tender will include the construction of a 180-kilometer pipeline which is expected to commence operation in 2018, carrying up to 20 billion cubic meters (bcm) of gas a year. The pipeline is planned to be connected to the national gas network through a valve at an existing pipeline in Mardin province. Northern Iraq reportedly has 5 trillion cubic meters of gas reserves.
Rattled by the fallout from the downing of a Russian jet, Turkey has geared up to diversify its gas suppliers in order to ensure its energy security. Even though Russia, its main supplier, has avoided imposing restrictions on gas exports to Turkey since then, the Turkish government has engaged in negotiations with its remaining suppliers in a bid to boost the volume of its current imports and to establish alternative sources with new partners.
Turkey currently imports 95 percent of its energy from abroad and fulfills 55 percent (27 bcm) of its annual natural gas requirements (50 bcm) and 30 percent of its oil needs with imports from Russia. Since Turkey downed a Russian warplane over an airspace violation in late November, both diplomatic and economic ties between the two countries have been strained.
An interruption in gas flow to Turkey also poses a risk to the electricity network as the country generates 48.1 percent of its electricity via natural gas, according to government data.
Meanwhile, Turkish media reported on Tuesday that the Energy Market Regulatory Agency (EPDK) will announce in its Thursday meeting a hike in electricity prices for households by between 5 to 10 percent, effective as of January. The last time the EPDK increased unit prices was on Oct. 1.
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as reported by Anadolu Agency
BOTAS to open Sirnak gas pipeline to tender in February
Sirnak natural gas 185 kilometer-long pipeline will transfer gas from KRG to Turkey, according to BOTAS
The Sirnak Natural Gas Pipeline that plans to carry gas from the Kurdish Regional Government (KRG) region to Turkey will be opened to tender on Feb. 9, 2016, according to the Petroleum Pipeline Corporation, BOTAS announcement on its website.
After Turkey’s shooting down of a Russian military jet last month, Turkey accelerated its efforts to diversify energy sources as a precaution for any possible gas cuts from Russia.
As part of that process, the transfer of gas from the KRG region moved up on the agenda with Turkey's decision to advance the project. As a result, the pipeline will be opened to tender in February.
The pipeline will run its 185 kilometer length from Mardin in Turkey's southeast and will finish in Sirnak, on the Silopi border in Turkey's southeastern Anatolia region. It will be connected to the existing Mardin gas pipeline 35 kilometers from its originating point and is planned for connection to Turkey's national gas grid at the Serenli station in Mardin. The 40 inch diameter pipeline will be constructed in 720 days.
Tony Hayward, head of Genel Energy, a company operating in the KRG, stated in a conference in November that the region has 5 trillion cubic meters of natural gas reserves - enough to meet Turkey's needs for 50 years.
He also explained that the first flow from the region to Turkey may be delivered in two to three years’ time with a starting capacity of around 10 billion cubic meters.
"This amount may increase to 20 billion cubic meters at the beginning of 2020," he added.
By Nuran Erkul, Anadolu Agency
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