MOSCOW - Turkey, already the second largest importer of Russian gas among foreign importers, is considering boosting gas shipments via the Blue Stream gas pipeline by 3 billion cubic meters (bcm) per year and is ready to increase purchases immediately, Turkish Minister of Energy and Natural Resources Taner Yildiz said.
“We are ready to receive this gas immediately, even if it is shipped in early 2015, especially considering our need during the winter period of December-February. But according to Gazprom’s preliminary calculations, additional shipments can be made at the beginning of 2016. We are waiting for specific offers from them,” he said at a press conference in Moscow.
In the third quarter of 2014, Turkey was the only growing market for Russian gas among large consumers, while other main customers lowered purchases by double-digit percentages. Turkey increased procurements of Russian gas by 7.2 percent in January-September 2014 to 20.7 bcm.
Turkey received Russian gas via the Blue Stream gas pipeline along the bottom of the Black Sea and via the “Western route” through Ukraine, Romania and Bulgaria.
Following a stress test the EU is carrying out on whether shipments of Russian gas through Ukraine might stop this winter, Bulgaria might face a gas deficit. The EU has asked Bulgaria to assess the agreement with Turkey on electricity shipments in exchange for gas, in particular, assess whether Turkey should carry out reverse shipments of gas to Bulgaria if Bulgaria is required to supply electricity in emergency situations.
Energy Minister Alexander Novak said at a press conference that Gazprom and Turkish Botas are currently working out issues on economic feasibility and on the return of funds from a project to boost the capacity of the South Stream pipeline to 19 bcm from 16 bcm per year. This also includes a discussion of prices.
“When we talk about new investments, we’re also talking about both price and the efficiency of making investments. Naturally, these issues are interrelated,” he said.
“Overall both Turkey and Russia are interested in carrying out this project,” Novak said, adding that the process must be economically feasible for both parties.
Yildiz said Turkey’s demand for gas is “growing every day.” He added that the proportion of natural gas used to generate in Turkey was 43 percent last year, while this figure is expected to grow to 45 percent -46 percent currently.
Asked if the idea was being considered of offering a discount on the gas price, Yildiz said that Turkey had asked Gazprom about the discount and would consider any offers on price that the Russian company provides.
The Turkish minister added that both parties were interested in carrying out this project.
