Turkey has a high level of foreign dependency in both oil and gas, with the former accounting for 92% of the total and the latter exceeding 98%. Turkey’s gas is imported via pipelines and ships.
Turkey’s inaugural gas import via pipelines was made from the Union of Soviet Socialist Republics in 1987. The 25-year gas purchase and sale agreement between BOTAŞ and SoyuzGazExport marks the realisation of Turkey’s first long-term gas import agreement. Subsequently, agreements were reached with Algeria, Iran and Azerbaijan. In 1988, a liquefied natural gas (LNG) purchase agreement was concluded with Algeria.In the following years, long-term agreements were signed for gas imports by ship in order to diversify sources and provide price flexibility. In 1994, the Marmara Ereğlisi LNG Terminal commenced operations. In 1995, a 22-year LNG purchase agreement was signed with Nigeria. Subsequently, further long-term agreements were concluded. Some of these agreements have been extended, while the status of the 16 billion cubic metre, 30-year agreement signed with Turkmenistan is currently unclear, as there have been no gas purchases to date.
Long-term agreements | Date of first signature | First gas purchase date | Quantity (billion m³/year) | End dtae |
Russia (Blue Stream) | 1997 | 2003 | 16 | 2028 |
Russia (West Line)1 | 2013 | 2013 | 1 | 2035 |
Russia (West Line) | 2013 | 2013 | 5 | 2043 |
Azerbaijan (Phase 2) | 2001 | 2007 | 6,6 | 20302 |
Iran | 1996 | 2001 | 10 | 2026 |
Algeria (LNG) | 1988 | 1994 | 4,4 | 20273 |
Oman (LNG) | 2023 | 2025 | 1,4 | 2035 |
Turkmenistan | 1999 | – | 16 | 30 yıl4 |
In 1987, Turkey began importing gas, with imports increasing steadily over time. By 2005, Turkey’s gas imports reached 26 billion 571 million cubic metres. In 2010, imports reached 38 billion, and by 2023, this figure had increased to 50 billion 483 million cubic metres. Our own gas production reached 807 million cubic metres in 2023. In the same year, 1.57% of the total gas supply of 51 billion 291 million metric tonnes was produced in Turkey, while the remainder was imported. 6 Turkey’s actual underground storage capacity is 6.6 billion m³, while the actual LNG storage capacity registered under licence is 1 million m³.
Gas imports between 2013-2023 (Million Sm )3
In recent years, there has been a notable shift in the composition of imported gas. The share of gas imports through pipelines has declined, while the amount of gas imported through LNG from the spot market has increased. In 2023, 71.73% of imported gas was delivered to Turkey via pipelines, while 28.27% was supplied in the form of LNG. In 2023, 42.27% of imported gas was supplied from the Russian Federation, with the remainder sourced from Azerbaijan (20.3%), Algeria (11.8%), Iran (10.7%) and the USA (7.95%). The import of LNG has facilitated the purchase of gas from a multitude of countries in the spot market, resulting in an expansion of the number of importing countries. Turkey also imports gas, albeit to a limited extent. In 2023, 370 million m³ of the 896 million m³ of imports were made through pipelines to Bulgaria. Additionally, gas was exported to Greece and Romania via pipelines, while over 200 million m³ of LNG was exported to Switzerland.
Graph of gas imports by country
In recent years, gas production and import activities carried out by the public sector in Turkey have also been carried out by the private sector. In 2023, 90 percent of gas imports were carried out by the state-owned BOTAŞ, while the remaining 10 percent was imported by five different companies (Akfel, Bosphorus Gaz, Kibar Enerji, Socar Enerji and Ege Gaz). In addition to TPAO, which also holds a wholesale licence, seven other companies (Arar Petrol, Park Place Energy, Thrace Basin Natural Gas, Petrogas, Atlı Makina A.Ş., Marsa Turkey and Transatlantic Petroluem A.Ş.) are active in gas production.7 Of the 807 million m3 production, 683 million m is produced by TPAO, followed by Thrace Basin with 76 million m3 , Park Place with 27 million m3 and others. In Turkey, BOTAŞ is the only authorised organisation for transmission activities. Distribution is carried out by the private sector and the number of companies holding distribution licences in Turkey is 72 as of the end of 2023.
Turkey has very limited gas resources compared to its demand. In 2022, Turkey’s onshore gas reserves were estimated at 3.1 billion m3 .8 Gas reserves and production have increased in recent years due to new discoveries. On 21 August 2020, a significant gas reserve was found in the Sakarya field, followed by the Amasra and Çaycuma discoveries.9 BOTAŞ announced that the gas reserves found in the Black Sea in recent years have reached 710 billion m3 . Assuming that the total reserves are 713 billion and the annual consumption is 50 billion m3 , it can be concluded that Turkey has roughly 14 years of gas reserves. However, there is a debate on this issue as well. It is argued that the reserves cannot yet be accepted as proven reserves and that the reserves cannot be announced based on the tests carried out in only two of the wells drilledThe fact that the planned production target (reaching a quarter of the planned target within two years) was not reached after the discovery, and that the gas extracted contains a high proportion of water and sand lead to the questioning of the accuracy of the amount of reserves announced based on the findings.10 In Turkey, gas is produced mainly in Zonguldak, Kırklareli, Tekirdağ, Adıyaman, Çanakkale, Düzce, Edirne, Hatay, Mardin and İstanbul.11
Gas production in Turkey by city
Turkey’s gas and crude oil production
Source: MAPEG
Source: MAPEG
Turkey’s housing sector is one of the primary markets for gas consumption. By the end of 2023, all 81 provincial centres, 757 districts and 89 towns will be supplied with gas, with this number increasing on a daily basis. It is clear that residential properties in Turkey rely heavily on gas, particularly for heating. The results of the TurkStat Household Final Energy Consumption Survey show that gas is the primary energy source consumed in households, accounting for 48.3% of the total in 2022. Turkey’s total gas consumption, which exceeded 50 billion m³, was distributed as follows: approximately 17 billion m³ was used in residences and 14 billion m³ was used in the cycle sector (to generate electricity in gas power plants). The next largest consumers of gas were the industry and service sectors.
Gas consumption by sector
Gas in electricity generation
In 1985, the installed capacity of gas-fired power plants in Turkey was just 100 MW. By the end of 2023, the installed capacity of gas power plants reached 25,404 megawatts, representing 23% of the total installed capacity12. However, there has been a decline in the installed capacity of gas power plants in recent years, which has resulted in a corresponding decrease in the share of gas in electricity generation. In 2017, the installed capacity of gas power plants reached a peak of 26,596 MW. Over the past six years, approximately one thousand megawatts of gas power plants have been deactivated. 13
Electricity generation is subject to fluctuations due to a number of factors, including gas prices, electricity demand and political conditions. This is because electricity generation is driven by production rather than capacity, and therefore can vary independently of the installed capacity of the power plants. In 2006, gas power plants generated 80 thousand GWh of electricity. Since 2011, they have produced more than 100 thousand GWh, with a slight decrease to 57 thousand GWh in 2019. In 2021, the contribution of gas-fired power plants to Turkey’s electricity generation reached a record high of 111,000 GWh, driven by increased demand. 14
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