Turkey is expecting increase in LNG exports to Europe and is ready to resell excess gas volumes from Russia and Azerbaijan
BAKU. May 6 (Interfax) - Turkey is predicting an increase in the volume of liquefied natural gas exports to Europe, and is ready to supply surplus gas from Russia and Azerbaijan to the European market, Yashar Arslan, president of the Turkish Natural Gas Distributors Association said.
"Amendments to the Mining Law, as well as a number of energy laws adopted by the Grand National Assembly (Parliament) of Turkey on May 2, 2024, opened the way for Turkey to trade LNG with European countries, especially with neighboring countries. With the change in legislation, Turkey has set its sights on liquefying the natural gas it imports or produces from its own sources and exporting it," Arslan said, as quoted by local media.
Meanwhile, he said that the importance of LNG in world markets, especially in the European Union, mainly due to the Russian-Ukrainian conflict, is growing day by day. Arslan also said that 40% of European countries' annual demand for natural gas, which totals 450 billion cubic meters (bcm), is covered by this type of fuel.
According to Energy Market Regulatory Authority indicators, Turkey imported 50.5 bcm of natural gas in 2024, 30% of this volume was LNG, he said.
"Over the past 10 years, the share of LNG in Turkey's imported gas has increased from 15% to 30%. We expect this figure to increase to 40% given the opportunities that may arise from investments in the global LNG sector in the coming period," Arslan said.
In addition, annual contracts concluded by Turkey for the import of pipeline gas with a total volume of 36.15 bcm will expire in the period from 2025 through 2027, he said. "I think that a suitable basis will be created for the extension of existing pipeline gas contracts in order to ensure the security of gas supplies. In addition, Turkey will purchase cheap liquefied natural gas thanks to new contracts and, in particular, thanks to the increase in capacity for spot LNG supplies," he said.
Arslan also said that with the commissioning of the Sakarya gas field in the Black Sea, Ankara's natural gas production capacity has increased from 350-400 million cubic meters (mcm) to 800-850 mcm per year.
Turkey exported 900 mcm of natural gas last year, and Bulgaria was the country that received the most natural gas, at 370 mcm, he said.
"Thanks to its location, Turkey is in the middle of the 'bridge' between natural gas demand and supply. Our location will allow us to quickly deliver excess volumes of natural gas that Russia and Azerbaijan may have, in particular, to countries willing to import it. I think that in the coming years, our existing import contracts [for pipeline gas], growth of the production capacity at our own gas fields, as well as the liquefaction of gas from possible new fields in the Mediterranean and Black Seas, will improve Turkey's trade opportunities with its neighbors and, above all, with countries in Eastern Europe," Arslan said.