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Full-fledged gas hub requires investment, connecting other suppliers — source

According to the source, Turkish energy company Botas has already signed export agreements with Bulgaria, Hungary, Moldova and Romania

ANKARA, October 9. /TASS/. Creating an efficient gas hub in Turkey will require additional infrastructure spending as well as connection to the systems of other suppliers, a source in Turkey's energy sector told TASS.

"We have competitors in the region who want to build similar gas trading hubs in their own countries. Additional investments in infrastructure, pipelines and storage facilities are needed for the Turkish project to be successful and effective. However, it is also crucial to ensure a stable supply of gas not only from Russia but also from other countries," the source said.

"The possibility of a hub being discussed, including with Russia, is heavily influenced by current geopolitics. Political stability in the region is crucial. Strategically, Turkey needs to move from being a transit country for Europe to a trading platform. This work is already underway," the source added.

According to the source, Turkish energy company Botas has already signed export agreements with Bulgaria, Hungary, Moldova and Romania, which the source believes is one of the first steps towards building a portfolio of potential customers.

In October 2022, Russian President Vladimir Putin proposed the creation of a hub on the territory of Turkey to redirect the lost volume of transit through Nord Stream. According to the Turkish authorities, practically everything in the country is ready for the implementation of the hub project, but legislation needs to be amended. The first legislative decisions made in early April affected the activities of the Turkish oil and gas company Botas and several other suppliers.

On September 4 in Sochi, after talks with Turkish President Tayyip Erdogan, Putin said that Gazprom had handed over a draft roadmap for the gas hub project to the Turkish state company Botas. He mentioned that the formation of a joint working group was also on the agenda.

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