ANKARA, December 9. /TASS/. Turkey’s state energy company Botas has renewed its contract with Gazprom for 21.75 billion cubic meters (bcm) of pipeline gas, which flows via TurkStream and Blue Stream, for one year, Turkish Energy Minister Alparslan Bayraktar told an energy summit in Istanbul.
"Botas has extended its contract with Gazprom for 21.75 bcm of gas from TurkStream and Blue Stream for another year. Thus, there is no threat to Turkey in terms of supply security. I hope this gas will be purchased by Botas and delivered to Turkey. Regarding imports and efficiency, we need to reach a point where sellers offer a more competitive price to the Turkish market," he said when asked about the situation around negotiations on contracts with Gazprom that expire this year.
Besides Botas, private Turkish companies purchase gas from Russia, Bayraktar added. "Their contracts have not yet expired, with the earliest set to end around 2033, and some running until 2040. There are no legal barriers for the private sector to enter such contracts, but competitive pricing is crucial," he said.
The authorities previously introduced a number of legislative measures to liberalize the natural gas market, the minister noted, adding that they "have not yet achieved the desired results and level of liberalization." "We have been unable to make significant progress for various reasons. The main issue is that we do not sell gas to households at cost price. The state covers 45% of its cost. If this product cannot be offered at cost price, liberalization becomes unrealistic. Botas faces large losses and needs to manage this situation," he explained.
Entry to the Turkish market depends on sellers providing gas at sufficiently competitive prices, Bayraktar said. "Turkey is not the only player here. It is a two-player game, and importers must be able to supply, for example, 10 bcm of gas, not just deliver it for Botas to purchase. What are the intermediaries for then? Pricing remains a critical issue," he concluded.