Page 10 - EurOil Week 41 2021

EurOil POLICY EurOil

Time short for Ankara as it negotiates roll

over of long-term gas import contracts

TURKEY TIME is running short for Ankara as it nego- when the gas supply crunch started causing
tiates amid the energy crisis to roll over three major difficulties for Europe and other big gas
A meeting two weeks long-term gas import contracts that expire buyers amid the economic rebound from the
ago in the Russian before the end of the year, according to a report coronavirus crisis, Turkey somewhat changed its
Black Sea resort of from pro-government Turkish publication Daily tune and stepped up efforts to seal new pipeline
Sochi between Russian Sabah. deliveries.
President Vladimir Putin Two contracts relate to Russian pipeline gas Turkey was also coming to rely on a steady
and Turkish President shipments of 4bn cubic metres (bcm)/year each, increase in hydroelectric power, but prolonged
Recep Tayyip Erdogan while a third contract, which expires this month, drought conditions have undermined that sec-
ended without the concerns 1.3 bcm/year of Nigerian liquefied gas tor’s contribution to the grid.
conclusion of a gas (LNG). A fourth long-term contract, with Azer- Turkey consumes between 45 bcm to 50
deal. baijan, has been renewed, with Turkey agreeing bcm of gas per year, paying between $12bn and
a three-year contract to import up to 6 bcm/year $15bn, but with idled gas plants brought back
of pipeline gas, following the expiry of a 15-year online to compensate for the mothballing of
contract for 6.6 bcm/year, two industry sources hydroelectric facilities, consumption could surge
informed Reuters on October 12. to a record 60 bcm this year, according to Sabah.
A meeting two weeks ago in the Russian Black Turkey imported 48.1 bcm of gas last year, up 6%
Sea resort of Sochi between Russian President y/y. One-third came from Russia. Iran (pipeline)
Vladimir Putin and Turkish President Recep and Algeria (LNG) are other suppliers.
Tayyip Erdogan ended without the conclusion Turkey may have to renew all the expiring
of a gas deal. Putin, however, tried to reassure long-term gas contracts with at least the same
Ankara, saying Russian pipeline supplies would volumes to meet demand. It may also have to top
shield Turkey from the gas crisis. up its supply with expensive LNG, importing a
As 2021 progressed, Turkey attempted to gain little shy of 13 bcm of LNG from spot markets
more leverage in renegotiating long-term gas now seeing sky-high prices, the newspaper also
contracts by pointing to the rising availability of noted. Spot LNG imports so far this year stood at
LNG from the US and other sources. However, 2 bcm, official data showed.™

P10 www. NEWSBASE .com Week 41 14•October•2021