Page 15 - EurOil Week 45 2021

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Tupras noted: “In the third quarter in net income in Q3, up 145% y/y and 7% Russia with an increased volume from the
of the year, the price of Brent crude oil, above projections. Revenue increased 56% start of 2022, Turkish Energy Minister Fatih
which rose with the determined stance of to HUF1.65 trillion. Donmez said on November 4.
OPEC+ countries on supply control and The cost of raw materials and Speaking at a summit via videolink in
the continued increase in the demand for consumables rose 53% to HUF1.2 trillion Istanbul, Donmez said an agreement on the
petroleum products, rose to $78.8/bbl as of and total operating costs climbed just deal had largely been reached with Russia,
September end, from the level of 76.2 $/bbl 47% to HUF1.47 trillion. Operating profit Reuters reported.
at the end of June. jumped 171% to HUF191bn. Turkey is experiencing record demand for
“Global gasoline inventories continued A breakdown by business segment natural gas this year. Such demand has forced
to decline with the limited supply especially shows downstream turnover jumped the country to move for more purchases on a
driven by Hurricane Ida as demand for 67% to HUF1.47 trillion while operating surging spot market, with long-term contracts
petroleum products increased with the profit of the business rocketed 273% to expiring this winter.
effect of both summer season and increased HUF88bn, driven by strong petrochemical However, in October, Turkey was able
mobility. Gasoline crack margins rose to the margins. to renew one of those contracts when
highest level of the last five years. Upstream revenue rose 73% to it concluded a three-year, 11bn cubic metres
“Demand for diesel and jet fuel increased HUF173bn and the business had an (bcm) natural gas agreement with Azerbaijan.
with the acceleration [of] industrial activities operating profit of HUF65.2bn, against a The gas will be shipped via the Baku-Tiflis-
and also thanks to summer season, while a HUF1.7bn loss in the base period. Erzurum pipeline by end-2024.
strong recovery was observed in the middle MOL’s consumer services had a With winter fast approaching, time is
distillate crack margins in the third quarter.” turnover of HUF573bn, up 36% on the running short for Turkey’s energy officials
back of regional economic recovery, when it comes to rolling over three long-
while operating profit climbed 18% to term gas import contracts in all that expire
Bulgargaz proposes lower HUF54.3bn. before the end of the year.
The number of Fresh Corners units
Two contracts relate to Russian
gas price from November increased to 1,028 in Q3 from 1,008 in the pipeline gas shipments of 4bcm/year each,
previous quarter, with a non-fuel margin of while a third contract, which expires this
Bulgaria’s state-owned natural gas supplier an impressive 27.9%. month, concerns 1.3 bcm/year of Nigerian
Bulgargaz said it has proposed to the Production volumes declined slightly liquefied gas (LNG).
Energy and Water Regulatory Commission to 107.4mn boepd, due to higher crude oil As 2021 progressed, Turkey attempted to
(KEVR) to lower the natural gas price for prices reducing net entitlement production gain more leverage in renegotiating long-
companies and for households this month, in the Azerbaijan ACG field and lower term gas contracts by pointing to the rising
seeking BGN93.19 (€47.65) per MWh. natural production in the CEE region. availability of LNG from the US and other
In October, the price was increased “The good results of the third quarter sources. However, when the gas supply
significantly due to surging prices on have been supported by the favourable crunch started causing major difficulties for
international markets and the delivery external environment and the rebounding Europe and other big gas buyers amid the
price at which Bulgargaz was buying the regional economic growth. At the same economic rebound from the coronavirus
natural gas. time, we also leveraged our strengths, the crisis, Turkey somewhat changed its tune
However, as Bulgargaz has contracted resilient integrated business model and and stepped up efforts to seal new pipeline
with Gazprom Export significantly lower our highly cost-efficient asset base and deliveries.
delivery price, the company is now able to operation,” chairman-CEO Zsolt Hernadi Turkey was also coming to rely on a steady
reduce the price for end-users. said, commenting on the report. increase in hydroelectric power, but prolonged
Initially, Bulgargaz has proposed to “At the same time soaring commodity drought conditions have undermined that
lower only the price for households, but prices and the implications of the sector’s contribution to the grid.
after protests of company owners it has coronavirus [COVID-19] pandemic Turkey consumes between 45 bcm to
also agreed to reduce the price for them pose a significant risk to the economy 50 bcm of gas per year, paying between
too. and generate a very volatile operational $12bn and $15bn, but with idled gas plants
If approved, the new price would be environment,” he added. brought back online to compensate for
around half the average price of €91 per In updated guidance, MOL put full-year the mothballing of hydroelectric facilities,
MWh in Europe, Bulgargaz said in the EBITDA, adjusted for one-offs and the consumption could surge to a record 60
statement. current cost of supply, around or above bcm this year, according to pro-government
$3.2bn, up from $2.05bn in 2020. It sees publication Daily Sabah. Turkey imported
organic capex reaching about $1.7bn, 48.1 bcm of gas last year, up 6% y/y. One-third
MOL Q3 earnings jump on rising from $1.41bn in 2020. came from Russia. Iran (pipeline) and Algeria
MOL shares have risen 73% year-to-date (LNG) are other suppliers.
higher crude prices, wider to HUF2,794. long-term gas contracts with at least the same
Turkey may have to renew all the expiring

refining margins volumes to meet demand. It may also have
to top up its supply with expensive LNG,
Clean CCS EBITDA of CEE’s largest oil Energy minister says Turkey importing a little shy of 13 bcm of LNG from
and gas company MOL rose 67% year on may before end of year spot markets now seeing sky-high prices, the
year to HUF307bn (€852mn, or $1.02bn) newspaper also noted. Spot LNG imports by
in Q3, beating consensus by 7% as crude renew Russia natural gas October this year stood at 2 bcm, official data
prices rose sharply and refinery margins showed..
improved, according to the earnings report deal with higher volume
published on November 5.
MOL reported HUF139bn (€386mn) Turkey may renew its natural gas deal with

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