Can Turkey Become a Gas Hub?

134
DOI: 10.20542/0131-2227-2022-66-9-55-63
St. Petersburg State University, 1/3, Smolnogo Str., St. Petersburg, 191160, Russian Federation. 

Received 04.05.2022. Revised 07.06.2022. Accepted 27.06.2022.

Abstract. Since 1990s, Turkey has been committed to become an energy hub or center, which is, so far, one of the main pillars of contemporary national energy policy. Official documents do not directly mention the creation of a “gas hub” in Turkey as a main task, however all existing strategic plans focus on the development of Turkish gas market through creation of a predictable market and diversification of energy sources and suppliers. The latest requires the development of gas storage infrastructure, gas pipeline network, LNG and floating storage and regasification units (FSRU), and reorganization of energy enterprises. Approaches of various actors of Turkish energy policy regarding the ways of creating a gas hub still differ from each other: when liberals support the policy of reducing the share and role of state-owned companies in the market, others give priority to creating the necessary legislation and administrative conditions to ensure the transparent operation of state-owned companies while maintaining their vertically integrated structure. This study aims to identify the beneficial and unfavorable conditions in Turkey to achieve the mentioned goal. It is made up of four sections: the first section briefly examines the concept and criteria of a “gas hub”, the next one outlines the goals set in Turkey’s energy strategy and the last two sections put the strong and weak sides of the gas infrastructure and the market. Given the current state of the gas infrastructure and gas market, and also domestic and foreign political circumstances, it is still difficult to characterize Turkey as an “energy trading center/gas hub”, simultaneously, it is impossible to ignore its great potential and based on the criteria of the EU Agency for the Cooperation of Energy Regulators (ACER), it can be concluded that Turkey belongs to the category of “emerging gas hubs”. 

Keywords: gas hub, gas market, energy center, BOTAŞ, gas, LNG, gas pipelines, gas trade, Turkey


REFERENCES

  1. Winrow G.M. The Southern Gas Corridor and Turkey’s Role as an Energy Transit State and Energy Hub. Insight Turkey, 2013, vol. 15, no. 1, pp. 145-163.
  2. Kemp G., Harkavy R. Strategic Geography and the Changing Middle East. Washington, Carnegie Endowment and Peace, 1997. 512 p.
  3. Karan M.B., Küçüközmen C.C., Aktürk A. Re-examining Turkey’s Potential of Becoming a Natural Gas Hub. Dorsman A., Gök T., eds. Perspectives on Energy Risk. Berlin, Heidelberg, Springer, 2014, pp. 119-142. DOI: 10.1007/978-3-642-41596-8_8
  4. Roberts J. Turkey as a Regional Energy Hub. Insight Turkey, Summer 2010, vol. 12, no. 3, pp. 39-48.
  5. Kakışım C. Turkey’s potential to turn into a regional natural gas hub. International Journal of Eurasian Researches, vol. 8, no. 24, pp. 255-280. (In Turkish)
  6. Topuz K. The Missing Piece in the Turkey’s Gas Hub Ambitions. IICEC Energy and Climate Research Paper, June 2019. Available at: https://iicec.sabanciuniv.edu/sites/iicec.sabanciuniv.edu/files/2020-11/iicec_energy_and_climate_research_paper_the_missing_piece_in_the_turkeys_gas_hub_ambitions_2.pdf (accessed 04.06.2022).
  7. Dinçer İ., Ezan M.A., eds. Turkish Academy of Sciences Natural Gas Report, Ankara, TAS, 2021. 127 p. (In Turkish)
  8. Pamir N. The Power of Energy. İstanbul, Hayy Publishing, 2017. 631 p. (In Turkish).
  9. Özen E. The Turkish gas sector outlook. Turkey Energy Outlook. Ankara, UCTEA, 2020, pp. 135-160. (In Turkish)
  10. Opportunities and prospects for development of gas hubs in Russia. Klimentiev A., Kapitanov S., eds. Moscow, Skolkovo, December 2020. (In Russ.) Available at: https://energy.skolkovo.ru/downloads/documents/SEneC/Research/SKOLKOVO_EneC_RU_Gaz_Hubs_122020.pdf (accessed 04.06.2022).
  11. Heather P. Development of gas hubs and their role in the formation of benchmarks for physical contracts for supply of natural gas. Moscow, Skolkovo, July 2017. (In Russ.) Available at: https://energy.skolkovo.ru/downloads/documents/SEneC/research01.pdf (accessed 04.06.2022).
  12. Shikunova D.S. Evolution of gas hubs in Europe. The Contours of the World Energy Transition. Zhukov S.V., ed. Moscow, IMEMO, 2020, pp. 88-95. (In Russ.) DOI: 10.20542/978-5-9535-0573-4
  13. Karagöl E. T., Kavaz İ., Kaya S., Özdemir B. Z. Turkey’s National Energy and Mining Policy. SETA, June 2017, no. 203. (In Turkish) Available at: https://setav.org/assets/uploads/2017/06/Analiz203.pdf (accessed 04.06.2022).
  14. Garding S.E., Ratner M., Welt C., Zanotti J. TurkStream: Russia’s Southern Pipeline to Europe. CRS Report, 06.05.2021. Available at: https://sgp.fas.org/crs/row/IF11177.pdf (accessed 04.06.2022).
  15. Özdil E. Can Energy Be the Key to Turkish-US Relations in the Biden Era? Atlantic Council, 01.07.2021. Available at: https://www.atlanticcouncil.org/blogs/turkeysource/can-energy-be-the-key-to-turkish-us-relations-in-the-biden-era/ (accessed 04.06.2022).
  16. Sabadus A. TurkStream Disruption: Turkey, Greece Can Become New Gas Hubs. Energypost, 15.10.2019. Available at: https://energypost.eu/turkstream-disruption-turkey-greece-can-become-new-gas-hubs/ (accessed 04.06.2022).
  17. İcik Y.E., Atak M. An Evaluation of Turkey’s Natural Gas Hub Development Process. International Journal of Economics and Innovation, 2021, no. 7 (1), pp. 75-90.

SOURCES

  1. Natural gas sector research. Ankara, Competition Authority, 2012. (In Turkish) Available at: https://www.rekabet.gov.tr/Dosya/sektor-raporlari/7-rekabet-kurumu-dogal- (accessed 04.06.2022).
  2. Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2019. ACER/CEER, September 2020. Available at: https://documents.acer.europa.eu/en/Electricity/Market%20monitoring/Documents/MMR%202019%20-%20SNAPSHOT.pdf (accessed 04.06.2022).
  3. European Gas Hub Study. EFET Available at: https://www.efet.org/home/documents?id=19# (accessed 04.06.2022).
  4. 2019–2023 Strategic Plan. Republic of Turkey Ministry of Energy and Natural Resources. (In Turkish) Available at: https://sp.enerji.gov.tr/ETKB_2019_2023_Stratejik_Plani.pdf (accessed 04.06.2022).
  5. Natural gas market sector report 2021. Energy Market Regulatory Authority, 2022. (In Turkish) Available at: https://www.epdk.gov.tr/Detay/Icerik/3-0-94/dogal-gazyillik-sektor-raporu (accessed 04.06.2022).
  6. Pipelines and projects. Republic of Turkey Ministry of Energy and Natural Resources. (In Turkish) Available at: https://enerji.gov.tr/neupgm-boru-hatlari-ve-projeleri (accessed 04.06.2022).
  7. Azerbaijani gas supplies to Turkey will resume. Neftegaz.ru, 27.09.2021. (In Russ.) Available at: https://neftegaz.ru/news/transport-and-storage/698683-postavki-azerbaydzhanskogo-gaza-v-turtsiyu-vozobnovyatsya/ (accessed 04.06.2022).
  8. Secrets of the Baku court: what is hidden behind the new gas contract between Azerbaijan and Turkey. Neft Kapital, 04.10.2021. (In Russ.) Available at: https://oilcapital.ru/article/general/04-10-2021/tayny-bakinskogo-dvora-chto-skryvaetsya-za-novym-gazovym-kontraktom-azerbaydzhana-i-turtsii (accessed 04.06.2022).
  9. Contracts for the supply of gas to Turkey have been extended. Neft Kapital, 10.01.2022. (In Russ.) Available at: https://oilcapital.ru/news/export/10-01-2022/kontrakty-na-postavku-gaza-v-turtsiyu-prodleny (accessed 04.06.2022).
  10. Botas Signed the Contract. Bloomberg HT, 06.01.2022. (In Turkish) Available at: https://www.bloomberght.com/botas-gazprom-ile-yeni-sozlesme-imzaladi-2295999 (accessed 04.06.2022).
  11. The gas price in Europe has taken a new bar of $3000 per tcm. Interfax, 07.03.2022. (In Russ.) Available at: https://www.interfax.ru/business/826773 (accessed 04.06.2022).
  12. Opinion on the Draft Law on Amending the Natural Gas Market Law No. 4646. TUSIAD, 11.10.2012. (In Turkish) Available at: https://tusiad.org/tr/enerji-cg/item/download/7769_c6247e5eeb03c6a8e8c554f4ca315e2b (accessed 04.06.2022).
  13. Turkey Transfers Its Ziraat Bank, Istanbul Bourse, Botas Stakes to Wealth Fund. Reuters, 05.02.2017. Available at: https://www.reuters.com/article/us-turkey-economy-funds-idUSKBN15K0NP (accessed 04.06.2022).
  14. Strong reaction from Botas. EMO Energy, June 2007, no. 2, pp. 38-39. (In Turkish) Available at: https://www.emo.org.tr/ekler/963e568b6012907_ek.pdf?dergi=463 (accessed 04.06.2022).
  15. Those who don’t use gas, pay for Botas’ losses. Bloomberg HT, 05.10.2017. (In Turkish) Available at: https://businessht.bloomberght.com/piyasalar/haber/1660287-botas-in-zararini-dogalgaz-kullanmayanlar-oduyor (accessed 04.06.2022).
  16. The Highest increase in electricity and natural gas prices in Europe last year was in Turkey. Euronews, 07.05.2020. (In Turkish) Available at: https://tr.euronews.com/2020/05/07/avrupa-da-gecen-yil-elektrik-ve-dogal-gaz-fiyatlarina-en-fazla-zam-turkiye-de-oldu (accessed 04.06.2022).
  17. High demand for cheap gas. Dünya, 23.09.2021. (In Turkish) Available at: https://www.dunya.com/ekonomi/ucuz-dogalgaza-akin-var-haberi-634509 (accessed 04.06.2022).
  18. Natural gas market sector report 2020. Energy Market Regulatory Authority, 2021. (In Turkish) Available at: https://www.epdk.gov.tr/Detay/Icerik/3-0-94/dogal-gazyillik-sektor-raporu (accessed 04.06.2022).
  19. Oil and gas sector report 2020. TPAO. (In Turkish) Available at: https://www.tpao.gov.tr/file/2106/2020-petrol-ve-dogal-gaz-sektor-raporu-47460b743c70c609.pdf (accessed 04.06.2022).
  20. Erdogan Says Turkey Discovered 135 bcm Additional Natural Gas in Black Sea. Reuters, 04.06.2021. Available at: https://www.reuters.com/world/middle-east/erdogan-says-turkey-discovered-135-bcm-additional-natural-gas-black-sea-2021-06-04/ (accessed 04.06.2022).
  21. Where is Turkey headed in energy? UCTEA Chamber of Mechanical Engineers Report, Publication no. MMO/720. Ankara, Nov. 2020. 88 p. (In Turkish) Available at: https://www.mmo.org.tr/kitaplar/turkiye-enerjide-nereye-gidiyor-oda-raporu (accessed 04.06.2022).
  22. Annual Report 2021. EPİAŞ, Febr. 2022. (In Turkish) Available at: https://www.epias.com.tr/wp-content/uploads/2022/03/FR_2021.pdf (accessed 04.06.2022).
  23. Critical step for energy trade center target. EMRA, 14.06.2021. (In Turkish) Available at: https://www.epdk.gov.tr/Detay/Icerik/2-10409/enerji-ticaret-merkezi-hedefi-icin-kritik-adim%E2%80%A6 (accessed 04.06.2022).
  24. 2020 Review of Gas Hub Assessment. EFET, 26.10.2020. Available at: https://www.efet.org/home/documents?id=19# (accessed 04.06.2022).

For citation:
Eken E. Can Turkey Become a Gas Hub?. World Eonomy and International Relations, 2022, vol. 66, no. 9, pp. 55-63. https://doi.org/10.20542/0131-2227-2022-66-9-55-63



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 7
Topical Themes of the Issue:
  • The Supporting Structure of Global Security
  • Institutional Features of the Fourth Energy Transition
  • The Evolution of Modern German Christian Democracy
  • The Monarchies of the Persian Gulf and Central Asia
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.