Page 52 - TURKRptMar20

demand to 33.3 bcm and increased imports from Azerbaijan and LNG suppliers.
“The economic turmoil in Turkey [has] made consumers there particularly sensitive to the price of gas being supplied, with gas consumption pressured by alternative cheap sources such as coal,” Moscow-based VTB Capital wrote in a recent research note. “​Gazprom’s gas is... the most expensive on the Turkish market​, so to keep its market share the company is inevitably going to have to sacrifice the margin.”
Russia exported nearly 200 bcm of gas to Europe in 2019. It has been supplying gas to the Balkans and Turkey through an overland route transiting Ukraine, Moldova, and Romania.
Gazprom shipped around 3 bcm to Greece and about 500,000 mcm to North Macedonia via that route in 2019.
In northern Europe, as part of the plan hugely cut reliance on the Ukraine gas transit route, Russia completed Nord Stream 1 under the Baltic Sea to Germany in 2011. It is expected to launch the $11bn Nord Stream 2 project before the end of the year. Combined, the two pipelines have a capacity of 110 bcm.
The Kremlin in December renegotiated a new gas-transit contract with Kyiv. It guarantees 65 bcm this year and then 40 bcm over the following four years, marking big drops from nearly 90 bcm in 2019.
Noble Energy found the Leviathan gas field in Israeli waters in 2010 and Italy’s Eni discovered the giant Zohr deposit off the Egyptian coast in 2015. Exxon made a discovery off the southwest coast of Cyprus in 2019​.
In 2018, Turkey’s total oil product imports declined by 9.2% y/y to 38.7mn tonnes, with crude oil imports falling 18.6% to 21mn tonnes.
Turkey’s natural gas consumption declined by 6% to 50bn cubic metres in 2018.
Turkey’s natural gas consumption will amount to 52.02 billion standard cubic meters (bcm) in 2020, the country’s energy market regulator, EPDK, estimated in January 2020.
The watchdog’s gas consumption forecast for 2019 was 52.13 bcm. However, the final outcome for last year has not yet been released.
Turkey has four pipeline entry points and LNG re-gasification facilities. The country imports gas via pipelines from Russia, Azerbaijan and Iran.
In 2018, the country imported 23.6 bcm of gas from Russia, 7.9 bcm from Iran and 7.5 from Azerbaijan. The rest, amounting to 22.5%, was received in the form of LNG.
52​ TURKEY Country Report​ March 2020 ​ ​www.intellinews.com