Gazprom signs supply deal with Turkey’s Avrasya Gaz
Turkey’s gas industry took another step on the road to market liberalisation on Wednesday, as Gazprom Export confirmed it had signed a supply deal with Turkish company Avrasya Gaz A.S. for 500 million cubic metres (Mm3) of gas per year through to 2021, the company said on Wednesday. The agreement is the first stage of the transfer of gas-trading rights from Botas to private companies as part of the gradual liberalisation of the Turkish gas market.
In 2005, 4 billion cubic metres (Gm3) was up for transfer from Botas the state owned to the private sector. The tender was awarded 30th November 2005 by Botas, to four companies Shell Energy A.S with 250 Mm3/y (see ESGM 13.042), Bosphorus Gas A.S, which is owned by Gazprom, 40% and Turkey’s Tur Enerji, 60% and has a supply contract of 750 Mm3/y (see ESGM 13.098), Enerco Enerji A.S. and Avrasya Gaz A.S. Avrasya Gaz is the last company to sign a transfer agreement.
The amount transferred to Avrasya is a drop in the ocean compared to the total volumes that are delivered to Turkey each year. In 2006, a total of 20 Gm3 was delivered and on current trends the 2007 figure is likely to be higher at an estimated 23 Gm3 making Turkey the third largest purchaser of Russian gas, according to Gazprom.
Under Turkey’s natural gas market law 2001, Botas is required to sell off at least 10% of its import contracts each year until it controls only 20% by 2009 - the deadline by which the monopoly is due to have been separated into separate units for import, transport, storage and distribution. DM
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