Page 14 - FSUOGM Week 07 2023

FSUOGM POLICY FSUOGM

Turkey delays summit on gas hub proposal

TURKEY TURKEY has delayed a summit on establish- time when the country is facing high inflation,
ing a hub for Russian gas supply from February a weak currency and other issues. These issues
The gas hub is 14-15 until March 22 in light of the disastrous have caused poll ratings for Turkish President
no longer a policy Kahramanmaras earthquake, Russian media has Tayyip Erdogan to slump, as his administration
priority in light of the reported, and there are signs that the proposal is prepares for twin parliamentary and presidential
devastating earthquake facing significant other obstacles. elections next year.
that has hit Turkey. Russian President Vladimir Putin proposed According to Energy Intelligence (EI), Rus-
establishing Turkey as a hub for delivering gas to sian officials are not on a draft list of speakers at
the EU in October, after serious leaks caused by the summit, even though the hub was Moscow’s
suspected sabotage rendered the Nord Stream 1 idea. While Turkey is eager to develop itself as a
inoperable. It has been suggested that the plan hub, the role of Russia in future trade remains
could involve doubling the capacity of the Turk- unclear, the news outlet reported on February 8.
Stream pipeline that runs from Russia to Turkey While Gazprom’s preference is to sell gas
to 63 bcm per year, and Gazprom selling its gas on its own electronic exchange, sources told EI
at the Turkish-Bulgarian border via its electronic that Turkey instead wants to use its own Epias
sales platform. exchange as the platform for sales. Therefore the
Establishing the hub is no longer a priority for same platform would handle gas from various
Ankara given the earthquake, and work on the sources including LNG and Turkey’s own off-
proposal may be delayed, Russian Presidential shore fields. Other regional gas producers such
Spokesman Dmitry Peskov said on February 9. as Azerbaijan, Iran and Turkmenistan have also
“This indeed cannot be a priority for the been invited to take part, although it is unclear
Republic of Turkey now. We embrace that,” he how much volume they could provide.
said. “The schedule can be shifted. As you know, By selling on its own exchange, Gazprom
the pace of work in this area was very high. But would have total control over the price, whereas
we have no doubt that Turkey will cope with the pricing at Epias would be influenced by domes-
disaster, will provide all necessary help to the vic- tic prices in Turkey and long-term import con-
tims, and will take care of repairing the destroyed tracts. On the other hand, sales at a Turkish hub
cities.” are likely to be looked on more favourably by
Turkey’s government has been eager to por- European buyers, even if there are still Russian
tray the gas hub as a diplomatic success at a molecules in the mix. ™

P14 www. NEWSBASE .com Week 07 15•February•2023