TRANSIT OF OIL AND GAS ACROSS TURKEY ASHGABAT INTERNATIONAL ENERGY CHARTER FORUM ‘’Towards a Multilateral Framework Agreement on Transit of Energy Resources’’ TRANSIT OF OIL AND GAS ACROSS TURKEY Dr. Reha A. Muratoğlu Head of Transit Petroleum Pipelines Department Ministry of Energy and Natural Resources, Republic of Turkey 30-31 May 2017, Ashgabat, TURKMENISTAN
Oil and Gas Reserves Around Turkey Proven Reserves OIL: 60% of WORLD GAS: 72% of WORLD
Natural Energy Corridor WORLD’S BIGGEST NATURAL GAS IMPORTER WORLD’S BIGGEST NATURAL GAS AND OIL RESERVES Natural Energy Corridor
Oil Pipelines & Routes
BTC Oil Pipeline In operation as of June 2006. Throughput capacity: 1 million barrels per day Source: Primarily ACG. Also Kazakh and Turkmen crude since 2008. Up until now, 2.714 million barrels of oil were loaded onto 3548 tankers from the Ceyhan Terminal in Turkey.
Iraq-Turkey Oil Pipeline Crude Oil Pipeline Agreement / Turkey-Iraq (27 August 1973), 1985 Addendum and 2010 Amendment In operation as of 1976 and 1st tanker in May 1977. 2 parallel lines: 641 km & 656 km in TR Pipeline Diameter: 40" & 46" Max. Annual Capacity: 70.9 Million tons
Gas Transit Potential (2020 onwards) West Line 14 bcm Blue Stream 16-32 bcm Azerbaijan Kazakhstan Turkmenistan 30-40 bcm Iran Iraq 10-15 bcm LNG 12 bcm TurkStream 32 bcm 84 – 135 bcm 50 - 60 bcm 144 – 185 bcm POTENTIAL TRANSIT DOMESTIC DEMAND SUPPLY
Southern Gas Corridor New route & new source of gas for EU. Directly linking European gas market to the resources in the Caspian & Middle East basin. To be commenced with the Shah Deniz Phase-II gas of Azerbaijan. BP 2014 overall investment: ~45,000,000,000 $ Opening of SGC: Development of SD Field Expansion of SCP (SCPX) Construction of TANAP & TAP Gas Sale Agreements / SDC-9 European companies (19 September 2013) 10 bcm gas is to be delivered to Bulgaria, Greece, Italy and adjacent market hubs.
TANAP Project Backbone of the Southern Gas Corridor 26 June 2012 IGA and HGA were signed. FID was taken on 17 December 2013. Groundbreaking Ceremony was held on 17 March 2015 in Kars/Turkey More than %70 of the overall construction has been completed. 6 bcm is to be delivered to BOTAŞ in 2018 and 10 bcm to TAP in 2020. Total Length: ~1900 km Pipeline Diameter: 56" & 48" Capacity: 31bcma Entry Point: GE Exit Points: TR + GR + BG Once TANAP is commenced with Shah Deniz Phase-II gas of Azerbaijan other Caspian sources such as Turkmenistan can be delivered to Europe via TANAP.
TurkStream Turkey-Russia IGA concerning TurkStream Gas Pipeline System was signed on 10 October 2016. Offshore/onshore section 1 will be solely allocated for gas supply to Turkey as a substitution of West Line. The offshore/onshore section 2 will be allocated to transit for EU. Realization of second section is depend on the firm commitment of EU countries. Construction has started in the Russian territory. Pipeline will be operational by the end of 2019. Consist of four sections: offshore section 1-2 and onshore section 1-2 Total capacity up to 31,5 bcma Two parallel lines of each 15,75 bcma
Potential Gas Sources & Challenges Turkmenistan: Framework Agreement between Turkey-Turkmenistan (30 May 2013) Discussions and negotiations among EC&TM&AZ including TR No concrete outcome yet East Mediterranean: New promising gas source but need for holistic political resolution to supply these sources to world markets. Compatible gas price is essential. Pipeline through Turkey would be the most feasible solution. Iraq: No political stability in the region but significant source for Turkey&EU.
Final Remarks Turkey offers much more greater potential for gas transit rather than oil. Turkey has a diversified gas market in terms of supplier and route. High domestic demand (46 bcm in 2016) and transit potential (up to 135 bcm). Enhanced pipeline grid (app. 13.000km of high pressure pipelines). Turkey offers physical and liquid gas hub for Europe.
Thank you… Dr. Reha A. Muratoğlu Head of Transit Petroleum Pipelines Department Republic of Turkey Ministry of Energy and Natural Resources