Page 43 - TURKRptAug21

8.0 Industry & Sectors 8.1 Sector news
8.1.1 Oil & gas sector news
BOTAS has booked all spot capacity for Caspian gas imports offered by the regulator EPDK at the Turkgozu border point.
BOTAS booked 19mn cubic metres/day of monthly capacity on the Turkish-Georgian border for August-December 2021, according to notes published by BOTAS and EPDK.
The capacity is much higher than had been offered by the regulator EPDK earlier in July.
Under latest legal arrangements, companies importing spot volumes are expected to sell 20% of their quantities on the organised futures market. However, the rule has been waived for 2021, according to the EPDK note published on July 28.
Until its expiry in April 2021, BOTAS imported 6.6bn cubic metres/year through the point under the long-term Shah Deniz I contract.
BOTAS is reportedly in talks to extend the contract but so far there are no indications that it has reached an agreement with its Shah Deniz I partners.
BOTAS will pay TL0.648/thousand cubic metres (€0.05/MWh) for transmission capacity, a Turkish trader said.
EPDK had also offered capacity for Caspian gas at the Trakya and Seyitgazi delivery points along the newly-built Trans-Anatolian Pipeline (TANAP) but none of this was booked, sources told ICIS. The capacity may be offered again in August, sources added.
Seyitgazi is the main delivery point for gas offtaken by BOTAS as part of the Shah Deniz II contract with Azerbaijan.
The Trakya delivery point is close to the Turkish-Greek border where Caspian gas is shipped for further delivery into Greece and Italy.
EPDK offered 5.15mcm/day at Seyitgazi on TANAP, 3.6cmcm/day of which would have been for the period 1 August – 31 December and 1.545mcm/day for August 2021.
It also offered 8.2mcm/day at the Trakya off-take point on TANAP, with 5.74mcm being for the period 1 August – 31 December and 2.46mcm/day for August ’21.
BOTAS and other companies may have abstained from booking capacity at these delivery points because transmission tariffs via TANAP are high, hovering around $75.00/thousand cubic metres (€6.00/MWh).
BOTAS currently holds a six bcm/year of Caspian gas contract from the Shah Deniz II project in Azerbaijan. The gas is imported via TANAP and the price paid for long-term imported gas is calculated as 88% of the Russian imported gas, which currently stands at $240.00/kcm (€19.20/MWh) for Q3 ’21.
43 TURKEY Country Report August 2021 www.intellinews.com