1. 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

2. Oil and Gas Reserves Around Turkey
Proven Reserves
OIL: 60% of WORLD
GAS: 72% of WORLD

3. Natural Energy Corridor
WORLD’S BIGGEST NATURAL GAS IMPORTER
WORLD’S BIGGEST NATURAL GAS AND OIL RESERVES
Natural Energy Corridor

4. Oil Pipelines & Routes

5. 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, million barrels of oil were loaded onto 3548 tankers from the Ceyhan Terminal in Turkey.

6. 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: km & 656 km in TR
Pipeline Diameter: " & 46"
Max. Annual Capacity: Million tons

7. 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
bcm
144 – 185 bcm
POTENTIAL
TRANSIT
DOMESTIC
DEMAND
SUPPLY

8. 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.

9. 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: " & 48"
Capacity: bcma
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.

10. 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

11. 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.

12. 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 km of high pressure pipelines).
Turkey offers physical and liquid gas hub for Europe.

13. Thank you… Dr. Reha A. Muratoğlu
Head of Transit Petroleum Pipelines Department
Republic of Turkey Ministry of Energy and Natural Resources