Turkish Ministry of Energy: We will produce our own gas – We will be covered for 25 years

Energy and Natural Resources Minister Fatih Donmez said Turkey should focus on producing its own gas so as not to be affected by fluctuations in world energy prices, adding that the quality of natural gas discovered in the Black Sea is high.

“If we had oil, gas and coal, we would not be facing speculative and unreasonable prices at the moment,” Donmez told a news conference with economists in Istanbul.

Energy investments in the world slowed during the pandemic and when there was a rapid recovery, there was a shortage of supply, the minister said, adding that there were 540 billion cubic meters of gas reserves in the Sakarya Gas Field in the Black Sea.

“We want to connect it to our system in the first quarter of 2023,” Donmez said. “There will be about 3-4 billion cubic meters of production in the first year. We will reach the maximum level of 15-20 billion cubic meters in 2026. This will cover the gas needs of all homes in Turkey for about 25 years. domestic gas, expensive gas will leave the system “.

Noting that natural gas contains low and high levels of sulfur, moisture and particulate matter, Donmez said, “The gas in the Black Sea is what is called ‘sweet gas.’ The separation process is unlikely to cost much.”

Turkey’s total energy bill is expected to reach $ 55 billion this year, up from an average of $ 45 billion in the decade, according to the minister. “I do not think it will fall next year,” he said, noting rising gas prices, especially in Europe.

In recent years, Turkey has imported about 45 billion cubic meters of natural gas a year, paying about $ 12 billion to pipeline exporters Russia, Azerbaijan and Iran, as well as to LNG suppliers such as Qatar, Nigeria, Algeria and the United States. Almost a third of the country’s gas needs are met by LNG supplies.

This year, total gas consumption in Turkey is expected to reach 60 billion cubic meters. In an effort to close the gap, Turkey has entered into additional agreements with supplier countries.

Botaş operates a floating storage and regasification unit (FSRU) in southern Hatay Province, a liquefied natural gas (LNG) terminal in the northwestern province of Redesto and two underground gas storage facilities in the Silivria region of Central Asia.

Turkey supplies the cheapest gas in Europe by a wide margin, Donmez said.

While the average price of natural gas for households is 0.17 euros per cubic meter in Turkey, it is 0.26 euros in Ukraine, 0.93 euros in the United Kingdom, 1.3 euros in Germany and 1.9 euros in the Netherlands.

Turkish Petroleum Pipeline Corporation (Botaş) supplies natural gas to industrial zones and power plants at almost three times higher prices. The total cost of household price subsidies for gas will be about 80 billion Turkish lira ($ 7 billion), while for electricity, it will be about 20 billion pounds ($ 1.8 billion), Dönmez said.

Gas prices in Europe and the United Kingdom have skyrocketed almost six times this year due to strong winter demand and growing geopolitical tensions between major suppliers, Russia and consumer countries.