1. BOTAŞ PETROLEUM PIPELINE CORP. BOTAŞ Projects and the Energy World
Current Issues & Future Prospects of the Industry
Emre Engür
Head of International Projects Department
May, 2011

2. BOTAŞ with Numbers
Established in 1974
Built, Own and Operate 2,332 kms of domestic and cross-border oil pipeline system
Built and Operate 1,076 kms BTC Pipeline System (P/L, Loading Terminal, 4 PS etc)
Built, Own and Operate 12,000 kms of pipeline transmission system with 318 MW Compressor Station power
Built, Owned, Operated and Transferred 2 city distribution system (Bursa, Eskişehir)
US $ 12 bn sales revenue (2009)

3. Crude Oil Pipelines C D F E B A 3400 kms of Crude Oil Pipeline GEORGIA
BULGARIA
GEORGIA
Kırklareli
Edirne
Zonguldak
Bartın AZ
GREECE
İstanbul
Samsun
Ardahan
Ordu
Trabzon
Artvin
Kars
ARMENIA
Sakarya
Amasya
Gümüşhane C
Çanakkale
Bursa
Ankara
Bayburt
Kırıkkale
Yozgat
Sivas
Erzurum
Horasan
3400 kms of
Crude Oil
Pipeline
Eskişehir
Erzincan
Aliağa
Afyon
Kırşehir D F
Kayseri E
Şelmo
IRAN
İzmir
Turgutlu
Nevşehir
Malatya
Diyarbakır
Batman B
Konya
Aksaray
Adıyaman
Şırnak
Kahramanmaraş
Muğla A
Mardin
Karaman
Gaziantep
Şanlıurfa
Antalya
Ceyhan
İskenderun
IRAQ
SYRIA
A : I. KERKUK-CEYHAN CRUDE OIL PL " KM
B : II. KERKUK-CEYHAN CRUDE OIL PL " KM
C : BAKU TBILISI CEYHAN CRUDE OIL PL 30“ 42“ 46“ KM MTA CAPACITY
D : SELMO-BATMAN CRUDE OIL PL 6" 8“ 12“ KM MTA CAPACITY
E : BATMAN-DORTYOL CRUDE OIL PL “ KM MTA CAPACITY
F : CEYHAN-KIRIKKALE CRUDE OIL PL " KM MTA CAPACITY
71 MTA CAPACITY

4. High Pressure Natural Gas Pipelines
kms
14000
Length of Pipelines in 1989
845 kms
Length of Pipelines in 2000
1,875 kms
Length of Pipelines in 2010
>12,000 kms
Provinces reached: 67
Upon completion of existing investments: 72
Target: All over the country
12,024
12000
11,629
10,620
10000
8.333
7,809
8000
6000
6,078
5,245
4,510
4000
2,000
3,490
1,704
1,878
1,878
1,731
1,899
2000
1,270
1,693
1,490
1,035
1,220
1,220
1,239
845
845
845
1,020
833
912
1,009
735
423
395
190
185 19 31 11
174
122
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
BOTAŞ existing system reached all over the country, waiting to transit to Europe...

5. Natural Gas Pipeline System & Supply Contracts
14 BCM
Russian Fed (6 BCM+ 8 BCM)
6.6 BCM
Azerbaijan
Russian Fed (Blue Stream)
16 BCM
Turkmenistan
16 BCM
LNG (Algeria + Nigeria)
5.2 BCM
Iran
10 BCM
Iraq
10+ BCM ?
Existing Imports (Plateau Period)
Planned/Hanging Gas Contracts
Gas source diversification, Security of Supply!

6. Natural Gas Supply Contracts

7. Natural Gas Imports and Consumption
32.5 BCM 2010
37.8 BCM 2008
Import by Countries
17.0 BCM 2002
0.5 BCM 1987
Consumption by Sectors

8. Supply Potentials to Growing European Demand
European gas demand grows,
Supply sources waiting to be developed

9. Interconnector Turkey-Greece Project (ITG) (first phase)
First Phase of Interconnector Turkey-Greece-Italy (ITGI)
Total Pipe Length : 296 km
Turkey (Onshore) : 211 km
Offshore : 17 km
Gas Supply Date : 16 November 2007

10. Gas to Southern Europe: Greece and Italy (second phase)
Interconnector Turkey-Greece (ITG): (First Phase) The engineering and EIA studies conducted. Half cost of these studies are granted by EU TEN funds. Basic and Detailed engineering studies of the project completed in 2003.
Construction completed late 2007
Natural Gas Sales and Purchase Agreement was signed on December 23, 2003 in Ankara, by Botas and Depa. Accordingly, delivery volume by the line will be 750 MCM to DEPA. The line is operational since late 2007.
Interconnector Turkey-Greece-Italy (ITGI): (Second Phase) gas volume is envisaged to be increased to 12 BCMA in 2016 of which 8 BCMA for the Italian market and the rest to the Greek market.
BOTAS, DEPA and Edison are in cooperation for the project. Technical feasibility study is completed and studies are ongoing.
IGA signed on the 26th of July 2007 in Rome
Latest MoU signed by Botaş, Depa and Edison on the 17th of June 2010

11. The Turkey-Greece-Italy (ITGI) Project
The first and most important step for the realization of South European Gas Ring Project (SEGR) is Turkey‐Greece‐Italy Pipeline Project. The aim is to transport natural gas from the potential producers of the Caspian and Middle East to Greece and Italy via Turkey.
3.6 bcma-Greece
8 bcma-Italy
Total 11.6 bcma

12. The Nabucco Project
At the first stage, feeder lines to transport gas from points on the Georgian and Iraqi borders to Sivas, where the main Nabucco pipeline will start.
3,300 to 4,000 kms (depending on feeders)
56” line
Approx. 2 million tonnes steel
31 BCM capacity
Total budget of the project is estimated to be some € 8 billion
Target Start Date: 2016

13. Gas to Central & Western Europe: The Nabucco Project
The Nabucco Gas Pipeline Project will connect Turkey with Austria via Bulgaria, Romania and Hungary. In February 2002 the project is proposed by Botas to relevant companies and the Co-operation Agreement was signed among the associated companies of respective countries on October 11, 2002.
Five companies, namely BOTAS (Turkey), Bulgargaz (Bulgaria), Transgaz (Romania), MOL (Hungary) and OMV Gas (Austria) have established the Nabucco Gas Pipeline International Co. to invest in a pipeline to transport natural gas from points on the eastern/sothern borders of Turkey to facilities at Baumgarten in Austria.
The project is planned to transport up to 31 bcm/y of natural gas from Caspian Region and the Middle East.
Studies are going on for issues like finance, marketing, legal works, shipping contracts
FEED study ongoing
A new partner joined in Febrary 2008: RWE
IGA signed on the 13th of July 2009 in Ankara

14. Trans-Adriatic Pipeline Project (TAP)
First EGL Proposal
EGL, StatoilHydro & EoN Ruhrgas Partnership
10 BCM planned
20 BCM potential
Source: TAP

15. Transit Through Turkey
All projects started in a better world of Supply
Direction of supply to show the first comer
Still target to have all realised at the same period
TAP
BOTAŞ Transit System
IGI
ITGI

16. Projections for Turkey-More Sources to Reach
Turkey seems to remain as a net importer of natural gas.
Economy recovers nd gas consumption to start rising, increasing the bill for imports to real significant numbers.
With current level of dependency on natural gas in power generation and industry, significant price reductions are needed to keep the industry competitive.
Balanced diversification of supplies is essential to reduce dependency on particular supply sources as well as import prices
International projects of trade and transit will be important for such diversification.

17. What to Gain from Transit-Security of Supply
Cost-based transmission tariffs
Use of existing infrastructure and idle capacities to the extent possible
TRADE
AND
TRANSIT
TRADE
AND
TRANSIT
Partial exemption from TPA for trading of excess volumes
Removal of final destination clauses
MORE
FAVORABLE GAS
PRICE CONDITIONS
Some kind of a netback price mechanism for domestic consumption
Balanced diversification of supplies
ENHANCED
SECURITY OF SUPPLY
Underground storage capacities to serve both domestic market and end consumers in Euope

18. Trans-Caspian Kazakh Gas
Austria
Nabucco
Trans-Caspian Kazakh Gas
Russian Gas-West
Bosnia Herzegovina
Blue Stream
TAP
Potential Hub
Shah Deniz
Trans-Caspian
Turkmenian Gas
ITG
Nabucco
İzmir
ITGI
Arab Gas PL
Iraqi Gas
Iranian Gas
Ceyhan potential LNG liq.
Egyptian Gas
Arab Gas PL