Natural Gas Market in Turkey

The natural gas purchase agreement signed in 1986 between BOTAŞ and Soyuzgazexport company (former SSCB) for a 25-year period marked the first step of natural gas transportation and trade in Turkey, and in 1987, natural gas import was initiated for the first time.

With a view to increase source variety and supply security, an LNG purchase agreement was signed in 1988 with Algeria, and Marmara Ereğlisi LNG Storage Facility was inaugurated in 1994. In 1995, an LNG purchase agreement was signed with Nigeria for a 22-year period.

Iran was selected as yet another supplier, and a natural gas purchase agreement was signed in 1996, with the actual import being initiated in 2001. In 1997, a natural gas purchase agreement was signed with Russia for a 25-year period to transport gas through the Blue Stream Pipeline across the Black Sea, and the import began in 2003. This agreement marked the 4th different supply source of Turkey. Turkey then signed, in 1998, a 25-year period agreement on natural gas purchase with Russian Federation to transport gas through the West Line.

A natural gas purchase agreement for a 15-year period was signed in 2001 with Azerbaijan, providing another supply source for Turkey. During the same year, the law on natural gas market (No 4646) was published in the official gazette, striding a significant step in the liberalisation of Natural Gas Market of Turkey.

The publication of the law and the efforts of the Energy Market Regulatory Authority (EMRA) accelerated the procedures for inter-city natural gas distribution rights tenders, and third parties were allowed access to BOTAŞ transport hub in 2004.

The first contract transfer tender was held in 2005, and the first contract transfer agreement was signed in 2007. In the same year, 3rd party access to the transport hub was initiated officially, and a contract transfer of 4 Bcm was realised between the years 2007 and 2009.

In 2007, BOTAŞ initiated first natural gas exportation to Greece.

Egegas Aliağa LNG facilities began importation in 2009 as an additional supply source. Over the course of same year, legislation on 3rd party access to LNG facilities was published was EMRA, obtained institutional acknowledgment and entered into force in 2010.

In 2016, private sector initiated the first Floating Storage Regasification Unit (FSRU) project.