Page 8 - MEOG Week 19 2021

MEOG PROJECTS & COMPANIES MEOG

Private Turkish firms enter gas

price talks with Gazprom

TURKEY SEVERAL private companies in Turkey have imports are also reaching their end. The biggest
begun talks with Russian gas supplier Gaz- importer of Russian gas into Turkey is Botas,
prom to renegotiate gas purchase terms as their whose contract for 4 bcm per year of supplies
existing contracts reach expiry, local media has from Gazprom will also expire this Decem-
reported. At stake is the annual supply of around ber. Contracts for Russian supplies into Turkey
8bn cubic metres of Russian gas, or around 14% agreed with Avrasya Gaz, Shell, Bosphorus Gaz
of Turkey’s overall gas imports. and Enerco will also expire over the course of
Haber Turk TV reported on May 5 that Turk- 2022.
ish firms including Gama, ASA, Demiroren and Beyond Russian gas, supplies from Azerbai-
Kalyon were having discussions with their Rus- jan’s BP-led offshore Shah Deniz field to Turkey
sian supplier. Their current supply agreements were reportedly halted last month after a 6.6 bcm
will expire at the end of this year. per year contract with Botas expired. Accordng
Currently, most of Gazprom’s contracts to a report by S&P Global Platts, talks continue
with Turkish gas customers are long-term and for a possible renewal of the agreement.
indexed to oil prices with a time lag. This made Turkey has increased its leverage in price talks
the supplies uncompetitive versus Turkish LNG by expanding its access to LNG supplies. The
imports in 2019 and the first half of 2020, follow- country’s LNG purchases surpassed its piped
ing a slump in global spot prices for the super- supplies for the first time in May last year, as the
cooled gas. Turkish companies cut down on slump in global LNG prices made the commod-
Russian volumes, although take-or-pay clauses ity much more attractive.
in their contracts meant they still had to pay for In April Botas took delivery of its first owned
some supplies which they did not take. floating storage and regasification unit (FSRU),
According to Haber Turk TV, the Turkish the Ertugrul Gazi, which will initially operate
private firms want to scrap the oil indexation at the company’s Dortyol terminal on the east
in contracts with Gazprom and generally want Mediterranean coast. The vessel is being tested
more flexible supply terms. prior to commissioning. It will replace a previous
A number of other contracts for Turkish gas FSRU which Botas had leased.™

P8 www. NEWSBASE .com Week 19 12•May•2021