TURKISH NATURAL GAS MARKET REPORT This report is published within the scope of Official Statistics Programme.

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1 TURKISH NATURAL GAS MARKET REPORT 2016 This report is published within the scope of Official Statistics Programme.

2 All the information, tables and figures provided in this report are reserved and cannot be used without reference. REPUBLIC OF TURKEY ENERGY MARKET REGULATORY AUTHORITY Strategy Development Department ANKARA, 2017 Important Notice: es may revise their own data submitted before, through correction requests. Therefore, there may be some nonconformity between previous reports and present report published. In this report Turkish punctuations rules are adopted for numbers.

3 PRESIDENT S MESSAGE As Energy Market Regulatory Authority, in the line with the objective of establishing a stable, transparent and competitive energy market, we have been plugging away to fulfill regulation duty given to our institution, taking into account consumer rights, requirements of the companies and the fact that natural gas is one of the most important primary energy resources in our growing economy. As of the end of 2016, our national transmission and distribution networks provided natural gas to households in 76 provinces and 334 districts. In a very short period of time we plan to achieve the goal of providing natural gas supply through distribution network to all of our 81 provinces. In the present case, the regulations required for the utilization of natural gas as LNG and in cities, that can not reach to natural gas with pipeline network, realized in We are carrying out our legislative preparations at the fastest pace in order to make our country a regional natural gas trading hub. The investments made by the private sector in the Aliağa district of İzmir for our first Floating Storage and Regasification Unit (FSRU) in order to increase the storage and withdrawal capacities. Also for this purpose, efforts to for increase the existing capacities of storage facilities are going on.on the other hand, 68 distribution companies operating in the natural gas distribution sector had employed more than ten thousand people, and the total investment made by the sector had exceeded 13 billion TL by the end of We are decisive to take the necessary steps required for the consumers and the investors as the watchdog of the natural gas market. At this point, we regard the views of all market players into consideration as the key of taking the right decisions. For this reason, we will not give up listening to their voice, as long as we take the pulse of our investors and our consumers. As the Chairman of the EMRA, I wish that the 2016 Natural Gas Market Report, which is the result of our intensive work, will be useful for all stakeholders of the natural gas sector. Mustafa YILMAZ President of EMRA

4 Executive Summary Production In 2016, 367,28 million Sm 3 of natural gas was offered for sale by 9 producer companies that have wholesale license. The amount of domestic production decreased by 3,69 % compared to Import In 2016, ,17 million Sm 3 of natural gas was imported. Natural gas imports decreased by 4,28 % compared to the In 2016, the majority of imports with a share of 52,94 % was done from Russia. In 2016, 7.627,68 million Sm 3 of LNG (both long-term contracts and spot) was imported, which is 16,46 % of the total imports. While 27,84 % of the total LNG imports was supplied form spot markets, the rest came from the long-term contracts of BOTAŞ with Algeria and Nigeria. Export In 2016, only BOTAŞ was active among licensed 8 export companies and 674,68 million Sm 3 of natural gas was exported by BOTAŞ to Greece. Storage With coming of the first FSRU terminal in operation in 2016, the total storage capacity increased. The total stock of the warehouses was 1.700,25 million Sm 3 by the end of Consumption With the Board Decision No dated 25/02/2016, the national natural gas consumption was estimated as Sm 3 for gas year However, it was realized as Sm 3 with a deviation of 9,32 %. In 2016, 561,74 million Sm 3 of LNG went directly to consumers without using the national transmission network. The share of this amount in total national natural gas consumption was 1,21 %. Natural Gas By the end of 2016, the total investments (excluding operating expenses and VAT) realized by the distribution companies had reached to 13,16 billion TL. While the length of the constructed steel line was km and the length of polyethylene pipelines (excluding service line length) was km. As of the end of 2016, the total number of the subscribers of natural gas distribution companies was while the number of eligible consumers was approximately i

5 NATURAL GAS MARKET OVERVIEW IN 2016 Amount of Natural Gas Offered for Sale by Production Companies Holding by Provinces of Production Fields (Million Sm 3 ) Provinces Amount TEKİRDAĞ 202,5 KIRKLARELİ 62,27 İSTANBUL 56,40 DÜZCE 44,18 EDİRNE 1,24 MARDİN 0,35 ADIYAMAN 0,34 Total 367,28 Amount of Imported Natural Gas by Countries of Origin (Million Sm 3 ) Year Russia Iran Azerbaijan Algeria Nigeria Others* Total Percentage (%) 52,94 16,62 13,98 9,24 2,63 4, * Others represent the countries of imported spot LNG. Amount of Exported Natural Gas (Million Sm 3 ) Exporting Companies Country Amounts BOTAŞ Greece 674,68 Amount of Natural Gas Year-End Stocks by Year (Million Sm 3 ) Years Amounts , ,25 Amount of Consumed Natural Gas by s (Million Sm 3 ) s Conversion , ,31 Industry , ,99 Household , ,38 Service 3.160, ,73 Transportation 423,11 397,37 Energy 302,34 346,3 Other s 136,62 106,97 Total Consumption , ,06 ii

6 Table of Contents NATURAL GAS MARKET OF TURKEY PRODUCTION Province Based Production Amounts Production on the basis of Companies INTERNATIONAL NATURAL GAS TRADE Import Import by Pipelines Liquefied Natural Gas (LNG) and Spot LNG Import Natural Gas Import Data Production-Import Evaluation Export STORAGE Underground Gas Storage LNG Storage WHOLESALE by Pipelines of LNG Natural Gas Trade between d Companies Operating in Natural Gas Market COMPRESSED NATURAL GAS () TRANSMISSION Transmission via Pipelines LNG Transmission DISTRIBUTION Tenders Network Investment Performance Interruption of Natural Gas Service (Temporary Gas Cuts) Applications and Complaints Invoice Objections Emergency Actions Employment CONSUMPTION al Consumption iii

7 8.2 Consumption by Provinces Natural Gas Sales of d Companies to Final Consumers TARIFF AND PRICING Turkey World European Union and Turkey DETAILED DISTRIBUTION OF NATURAL GAS SALES IN ALL PROVINCES BY SECTORS AND COMPANIES IN 2016 (Sm 3 ) iv

8 List of Tables Table 1.1: Production of Natural Gas between (Million Sm 3 )... 2 Table 1.2: Monthly Natural Gas Production by Provinces in 2016 (Million Sm 3 )... 3 Table 1.3: Production Amounts and Shares of Producer Companies Holding (Million Sm 3 )... 5 Table 2.1: Amount of Imported Natural Gas by Source Country between (Million Sm 3 )... 8 Table 2.2: Import Quantities of Natural Gas Imported by Companies (Million Sm 3 ) and Shares (%) Between Table 2.3: Import Amounts by the Companies in 2016 (Million Sm 3 ) Table 2.4: Monthly Comparison of Imported Natural Gas between (Million Sm 3 ) Table 2.5: Monthly Data of Long Term Import and Spot LNG Import in 2016 (Million Sm 3 ) Table 2.6: Long Term LNG Import between (Million Sm 3 ) Table 2.7: Spot LNG Import by Countries in 2016 (Million Sm 3 ) Table 2.8: Share of Spot LNG Importers between (%) Table 2.9: Exported Natural Gas Amounts between (Million Sm 3 ) Table 2.10: Monthly of Natural Gas Export Amounts by Years (Million Sm 3 ) Table 3.1: Month End Natural Gas Stock Amounts by Years (Million Sm 3 ) Table 3.2: Delivered Natural Gas Amounts from LNG Terminals in 2016 (Million Sm 3 ) Table 4.1: Amounts of s as Pipeline Gas According to Types (Million Sm 3 ) Table 4.2: Amounts of LNG Sales According to Types (Million Sm 3 ) Table 4.3: Amount of Gas Traded between Companies Operating in Natural Gas Market in 2016 (Million Sm 3 ) Table 4.4: Amount and Share of 10 Companies which Supply the Largest Amounts to Companies Operating in Natural Gas Market (Million Sm 3 ) Table 4.5: Amount of Gas Purchases by d Companies Operating in Natural Gas Market from Other d Companies in 2016 (Million Sm 3 ) Table 4.6: Amount and Share of 10 Companies which Purchased the Largest Amounts from Companies Operating in Natural Gas Market (Million Sm 3 ) Table 5.1: Sale Amounts to Final Consumers between (Million Sm 3 ) Table 6.1: The highest Daily Withdrawal (Peak Demand) from Natural Gas Transmission Network by Month (Million Sm 3 ) Table 6.2: Monthly Transmitted LNG Amount by Years (Million Sm 3 ) Table 6.3: Monthly Transmitted LNG Amount by Companies (Million Sm 3 ) Table 7.1: Total Investments, Lengths of Steel and Polyethylene Pipelines in Regions Constructed by Companies Table 7.2: Length of Service Lines and Number of Service Lines in Regions Constructed by Companies Table 7.3: Number of Subscribers by Provinces by the End of Table 7.4: Consumption of Subscribers and Eligible Consumers by Companies by the End of 2016 (Million Sm 3 ) Table 7.5: Proportional of Application and Complaint Reasons Made by Consumers to Companies Table 7.6: Companies Employment Data by the End of Table 8.1: Total Natural Gas Consumptions by Years (Million Sm 3 ) Table 8.2: Comparison of al Natural Gas Consumption of 2015 and 2016(Million Sm 3 ) v

9 Table 8.3: of National Natural Gas Consumption by Provinces in 2016 (Sm 3 ) Table 8.4: Amounts and Shares of Sale to Final Consumers by Importer Companies in 2016 (Million Sm 3 ) Table 8.5: Amount and Shares of Sales to Final Consumers by Companies in 2016 (Million Sm 3 ) Table 8.6: Amounts and Shares of Sales to Final Consumers by Companies in 2016 (Million Sm 3 ) Table 8.7: Amounts and Shares of Sales to Final Consumers by Companies in 2016 (Million Sm 3 ) Table 8.8: Amounts and Shares of Sales to Final Consumers by Top 10 Companies Selling Natural Gas in 2016 (Million Sm 3 ) Table 8.9: Amounts and Shares of Transportation to Eligible Consumers by Companies in Their Region in 2016 (Million Sm 3 ) Table 9.1: Average Unit Prices of Natural Gas Sold by and Supplier Companies to Household and Industrial Consumers in 2016 (TL / Sm 3 ) Table 9.2: Natural Gas Prices of Households by Consumption Ranges (Excluding Taxes), Table 9.3: Natural Gas Prices of Households by Consumption Ranges (Including Taxes), Table 9.4: Natural Gas Prices of Industry by Consumption Ranges (Excluding Taxes), Table 9.5: Natural Gas Prices of Industry by Consumption Ranges (Including Taxes), Table 10.1 ADANA Table 10.2 ADIYAMAN Table 10.3 AFYONKARAHİSAR Table 10.4 AĞRI Table 10.5 AKSARAY Table 10.6 AMASYA Table 10.7 ANKARA Table 10.8 ANTALYA Table 10.9 ARDAHAN Table ARTVİN Table AYDIN Table BALIKESİR Table BARTIN Table BATMAN Table BAYBURT Table BİLECİK Table BİNGÖL Table BİTLİS Table BOLU Table BURDUR Table BURSA Table ÇANAKKALE Table ÇANKIRI Table ÇORUM Table DENİZLİ Table DİYARBAKIR Table DÜZCE vi

10 Table EDİRNE Table ELAZIĞ Table ERZİNCAN Table ERZURUM Table ESKİŞEHİR Table GAZİANTEP Table GİRESUN Table GÜMÜŞHANE Table HAKKARİ Table HATAY Table IĞDIR Table ISPARTA Table İSTANBUL Table İZMİR Table KAHRAMANMARAŞ Table KARABÜK Table KARAMAN Table KARS Table KASTAMONU Table KAYSERİ Table KIRIKKALE Table KIRKLARELİ Table KIRŞEHİR Table KİLİS Table KOCAELİ Table KONYA Table KÜTAHYA Table MALATYA Table MANİSA Table MARDİN Table MERSİN Table MUĞLA Table MUŞ Table NEVŞEHİR Table NİĞDE Table ORDU Table OSMANİYE Table RİZE Table SAKARYA Table SAMSUN Table SİİRT Table SİNOP Table SİVAS Table ŞANLIURFA Table ŞIRNAK vii

11 Table TEKİRDAĞ Table TOKAT Table TRABZON Table TUNCELİ Table UŞAK Table VAN Table YALOVA Table YOZGAT Table ZONGULDAK Table OTHER* Table TURKEY viii

12 List of Graphs Graph 1.1: Production of Natural Gas between (Million Sm 3 )... 2 Graph 1.2: Monthly Comparison of Natural Gas Production between (Million Sm 3 )... 3 Graph 1.3: Share of Natural Gas Production in 2016 by Provinces (%)... 4 Graph 1.4: Monthly Share of Producer Companies Holding by Amount of Natural Gas Production in 2016 (%)... 5 Graph 1.5: Shares of d Production Companies in 2016 (%)... 6 Graph 1.6: Consumer Shares which are Sold by d Production Companies in 2016 (%). 6 Graph 2.1: Share of Imported Natural Gas by Source Country in 2016 (%)... 9 Graph 2.2: Changes in the Share of Source Countries for Natural Gas Import between Graph 2.3: Share of Companies in Natural Gas Import in Graph 2.4: Monthly Comparison of Imported Natural Gas between (Million Sm 3 ) Graph 2.5: Share of Pipeline Gas and LNG in Total Import in 2016 (%) Graph 2.6: Share of Natural Gas Imported by Long Term Import and Spot LNG in 2016 (%) Graph 2.7: Amount of Imported Natural Gas by Long Term d Companies by Source Countries in 2016 (%) Graph 2.8: Monthly Comparison of Long Term Import and Spot LNG Import in 2016 (Million Sm 3 ) Graph 2.9: Long Term LNG Import Amounts by Source Countries between (Million Sm 3 ) Graph 2.10: Change in Spot LNG Import Amount between (Million Sm 3 ) Graph 2.11: Spot LNG Import by Countries in 2016 (%) Graph 2.12: Share of Spot LNG Importers between (%) Graph 2.13: Share of Total Natural Gas Supply by Origin in 2016(%) Graph 2.14: Yearly Natural Gas Export Amounts (Million Sm 3 ) Graph 2.15: Monthly Comparison of Natural Gas Exported between (Million Sm 3 ) Graph 3.1: Month End Natural Gas Stock Amounts by Years (Million Sm 3 ) Graph 3.2: Comparison of Monthly Import/Consumption/Stock Amounts in 2016 (Million Sm 3 ) Graph 4.1: Share of Import and Production Companies in Natural Gas Supply in 2016 (%) Graph 4.2: Proportional of Pipeline s to d Companies According to Types (%) Graph 5.1: Sale shares of Supplier Companies to (Sale) d Companies According to Their Type (%) Graph 5.2: Share of Sales to Final Consumer by Types in 2016 (%) Graph 6.1: Monthly of Total Natural Gas Amounts Entered into Transmission Network and Withdrawn from Transmission Network (Million Sm 3 ) Graph 6.2: The Highest Daily Withdrawal (Peak Demand) from Natural Gas Transmission Network by Month in 2016 (Million Sm 3 ) Graph 6.3: Monthly of Virtual Trade Volumes in 2016 (Million Sm 3 ) Graph 6.4: Monthly of Imbalance Amount in 2016 (Million Sm 3 ) Graph 6.5: Monthly of End-of-Day Trade in 2016 (Million Sm 3 ) Graph 6.6: Monthly Transmitted LNG Amount by Years (Million Sm 3 ) Graph 6.7: Comparison of Transmitted LNG Amount by Years (Million Sm 3 ) Graph 7.1: Share of Subscribers and Eligible Consumers by the End of 2016 (%) Graph 7.2: Monthly Consumptions of Natural Gas Subscribers in 2016 (Million Sm 3 ) Graph 7.3: of Number of 2016 Household Subscribers by Natural Gas Usage Type (%) Graph 7.4: Reasons for Temporary Gas Cuts in 2016 (%) ix

13 Graph 7.5: Proportional of Application and Complaint Reasons Made by Consumers to Companies (%) Graph 7.6: Status of Invoice Objections in 2016 (%) Graph 8.1: Share of al Consumption in 2016 (%) Graph 8.2: Comparison of al Consumption by Years Graph 8.3: Monthly Changes of 2016 al Consumption (Million Sm 3 ) Graph 8.4: Monthly Changes of al Consumption in 2016 (Million Sm 3 ) Graph 8.5: Amount of Natural Gas Sold and Transported by Companies in 2016 (Million Sm 3 ) Graph 9.1: Breakdown of Natural Gas Price Sold to Household and Industrial Consumers by and Supplies Company in Graph 9.2: Global Natural Gas Prices between ($/1000m 3 )* Graph 9.3: Global Natural Gas Prices in 2016 ($/1000m 3 )* x

14 NATURAL GAS MARKET OF TURKEY According to Natural Gas Market Law No which forms the legal framework of Turkey s natural gas market, import, distribution, storage, wholesale, export, transmission, compressed natural gas () distribution and transmission are defined as market activities for which obtaining a license is compulsory. Data and graphs about all market activities defined in the Law are depicted in this part by subtitles. 1. PRODUCTION Natural gas exploration and production (E&P) activities are performed within the framework of Turkish Petroleum Law No and E&P and operation licenses as given by the General Directorate of Petroleum Affairs. Although production is not regarded as a market activity in the Law, production companies can sell the natural gas they produced to wholesale companies, import companies, export companies, distribution companies, selling companies at well head, transmission and distribution companies and eligible consumers provided that they obtain wholesale license from the Authority. Moreover, production companies can export the natural gas they produced provided that they obtain export license. In this context; In 2016, natural gas, produced at South Eastern Anatolia, Thrace and West Black Sea regions, was sold to industrial and commercial entities near production regions, distribution companies, import companies, wholesale companies, and companies at well head by companies who obtained wholesale license from the Authority. These companies are listed below: Türkiye Petrolleri Anonim Ortaklığı (TPAO) Transatlantic Exploration Mediterranean International Pty.Ltd. (Merkezi: Avustralya) Türkiye Ankara Şubesi (TEMI) Tiway Turkey Limited Ankara Türkiye Şubesi (TIWAY) Thrace Basin Natural Gas (Türkiye) Corporation Türkiye-Ankara Şubesi (THRACE BASIN) Petrogas Petrol Gaz ve Petrokimya Ürünleri İnşaat San. ve Tic. A.Ş. (PETROGAS) Tiway Turkey Petrol Arama Üretim A.Ş.(TIWAY) Foinavon Energy, Inc. (Merkezi: Kanada) Türkiye-Ankara Şubesi (FOINAVON) 1

15 Amity Oil International Pty. Limited Merkezi Avustralya Türkiye Ankara Şubesi (AMITY) Corporate Resources B.V. Limited Şirketi-Ankara-Türkiye Şubesi(CORPORATE RESOURCES) Yearly natural gas output of producer companies holding wholesale license are given at Table 1.1. Table 1.1: Production of Natural Gas between (Million Sm 3 ) Years Quantities Graph 1.1: Production of Natural Gas between (Million Sm 3 ) In 2016, the outputs of production companies holding wholesale license decreased by 3,69 % compared to As seen in Graph 1.2, in 2016, the monthly production patterns had been almost stable. 2

16 Graph 1.2: Monthly Comparison of Natural Gas Production between (Million Sm 3 ) 1.1.Province Based Production Amounts When natural gas production fields are considered, it is seen that, with 55,14 % share, the largest production took place in Tekirdağ. Then, Kırklareli with 16,95 % share and İstanbul with 15,36 % share follow. Production amounts according to provinces and months are given at Table 1.2. Table 1.2: Monthly Natural Gas Production by Provinces in 2016 (Million Sm 3 ) January February March April May June July August September October November December Total TEKİRDAĞ 20,11 18,58 20,52 16,72 17,62 15,6 17,1 16,88 12,03 14,78 15,25 17,3 202,5 KIRKLARELİ 5,99 4,9 4,45 5,82 4,44 5,06 5,99 5,56 4,77 5,43 5,19 4,68 62,27 İSTANBUL 4,74 4,81 4,68 4,6 4,4 5,36 0,85 2,43 4,58 4,91 6,98 8,08 56,40 DÜZCE 4,35 3,86 4,45 4,39 4,28 3,84 3,91 3,92 3,58 2,8 2,51 2,29 44,18 EDİRNE 0,21 0,2 0,2 0,19 0,18 0,17 0, ,24 MARDİN 0,08 0,07 0,06 0,07 0,05 0, ,35 ADIYAMAN 0,04 0,02 0,02 0,02 0,01 0,01 0,01 0,01 0,02 0,05 0,05 0,06 0,34 Total 35,52 32,43 34,4 31,81 30,98 30,06 27,95 28,8 24,98 27,97 29,98 32,4 367,28 3

17 ADIYAMAN 0,09% DÜZCE 12,03% EDİRNE 0,34% İSTANBUL 15,36% TEKİRDAĞ 55,14% KIRKLARELİ 16,95% MARDİN 0,10% Graph 1.3: Share of Natural Gas Production in 2016 by Provinces (%) 1.2. Production on the basis of Companies 367,28 million Sm 3 of natural gas was produced in 2016 and the majority of this production was done by TPAO and Thrace Basin Natural Gas Corporation. Production amounts and shares of production companies holding wholesale license are given at Table 1.3 and in Graph

18 Table 1.3: Production Amounts and Shares of Producer Companies Holding (Million Sm 3 ) January February March April May June July August September October November December Total TPAO 22,56 20,54 20,54 18,87 18,05 18,83 18,11 18,97 16,54 18,41 20,42 23,22 235,06 THRACE BASIN 8,93 8,32 7,98 6,91 7,1 6,12 5,33 5,13 4,7 5,21 5,43 5,44 76,59 CORPORATE RESOURCES 0 0 2,03 2,37 2,16 1,84 1,51 1,75 1,23 2,12 2,16 1,86 19,03 AMITY OIL 1,58 1,39 1,39 1,24 1,32 1,18 0,98 1,01 0,75 0,84 0,74 0,74 13,16 TIWAY TURKEY PETROL ARAMA ÜRETİM A.Ş. 1,16 1,03 1,19 1,18 1,14 1,03 1,05 1,05 0,96 0,75 0,67 0,61 11,82 FOINAVON ENERGY 0,53 0,47 0,55 0,54 0,52 0,47 0,48 0,48 0,44 0,34 0,31 0,28 5,41 TIWAY TURKEY LİMİTED ANKARA TÜRKİYE ŞUBESİ TRANSATLANTIC EXPLORATION 0,52 0,45 0,51 0,51 0,48 0,4 0,39 0,39 0,36 0,28 0,25 0,23 4,77 0,15 0,14 0,15 0,14 0,14 0,14 0, ,94 PETROGAS 0,07 0,07 0,07 0,07 0,06 0,05 0,03 0,02 0,02 0,02 0,01 0,02 0,5 Total 35,52 32,43 34,40 31,81 30,98 30,06 27,95 28,8 24,98 27,97 29,98 32,4 367,28 December November October September August July June May April March February January AMITY OIL CORPORATE RESOURCES B.V. LİMİTED -ANKARA-TÜRKİYE ŞUBESİ FOINAVON ENERGY PETROGAS THRACE BASIN TIWAY TURKEY PETROL ARAMA ÜRETİM A.Ş. TIWAY TURKEY LİMİTED ANKARA TÜRKİYE ŞUBESİ 0% 20% 40% 60% 80% 100% Graph 1.4: Monthly Share of Producer Companies Holding by Amount of Natural Gas Production in 2016 (%) 5

19 AMITY OIL 3,58% CORPORATE RESOURCES 5,18% FOINAVON ENERGY 1,47% PETROGAS 0,13% TPAO 64,00% THRACE BASIN 20,85% TIWAY TURKEY PETROL ARAMA ÜRETİM A.Ş. 3,22% TRANSATLANTIC EXPLORATION 0,25% TIWAY TURKEY LİMİTED ANKARA TÜRKİYE ŞUBESİ 1,30% Graph 1.5: Shares of d Production Companies in 2016 (%) These companies sold 60,68 % of natural gas they produced to final consumers by direct lines. Consumer shares which were sold by wholesale licensed production companies are seen at Graph ,60% Import 17,61% Final Consumer 60,68% 15,11% Graph 1.6: Consumer Shares which are Sold by d Production Companies in 2016 (%) 6

20 2. INTERNATIONAL NATURAL GAS TRADE 2.1 Import Usage of natural gas started in 1970 s and its usage rate and areas have increased in parallel with the rise of energy demand and advantages of natural gas. Import became compulsory because of limited reserve and production amounts in comparison with existing and potential usage Import by Pipelines After first purchase agreement with Russia in 1986 which includes importing 6 billion m3 (plateau) amount annually, to meet increasing consumption. Enlargement of natural gas purchases has continued as part of other agreements signed with Russia (Additional West Line and Blue Stream Line), Iran and Azerbaijan. Thereby, in the current situation, Turkey imports natural gas from 3 different countries via pipeline as part of long term purchase agreements Liquefied Natural Gas (LNG) and Spot LNG Import When transmission of natural gas is impossible or infeasible with pipeline in terms of technical and economical reasons, natural gas could be traded in the form of LNG. By this way, gas is liquefied by cooling to -162 C as its volume is reduced 600 times and LNG is transferred by specifically manufactured tankers. To increase security and flexibility of supply, by BOTAŞ, LNG import from Algeria started in 1994 as part of the purchase agreement signed in 1988, import from Nigeria started in 1999 as part of the purchase agreement signed in 1994 for diversifying supply sources. Decreasing amount of natural gas from West Line after the natural gas crisis between Russia and Ukraine in 2006, Iran s cuts of natural gas in wintertime because of technical problems and the fact that Iran could not meet her domestic consumption and not having enough storage capacity caused a supply problem about the natural gas coming from pipelines. Because of these reasons, especially in winter months, less daily supplies projected by the agreements realized and thus some problems occurred about ensuring supply-demand balance. On the other hand, with Electricity Market Law and Law Related to Making Amendments on Some Laws dated 09/07/2008 and numbered 5784, spot LNG import was set free for BOTAŞ and other market players and thus spot LNG import activity took place in the regulations. Also, with only one spot LNG import license, companies became able to import LNG from more than one country. There exists 3 LNG terminals in operation for storage, gasification and withdrawal of LNG to grid as of One of them is Marmara Ereğlisi LNG Terminal which came into operation in 1994 by BOTAŞ and the other one is Ege Gaz A.Ş. LNG Terminal which was constructed in 2001 in Aliağa and came into operation in The last one is a Floating Storage and Regasification Unit (FSRU), owned by Etki Liman İşletmeleri Doğal Gaz İthalat ve Ticaret A.Ş., which is the first FSRU terminal of Turkey, came into operation by the end of

21 2.1.3 Natural Gas Import Data Import amounts realized between 2006 and 2016 are given at Table 2.1 on the basis of source country. Table 2.1: Amount of Imported Natural Gas by Source Country between (Million Sm 3 ) Countries Russia Iran Azerbaijan Algeria Nigeria Others* Total Percent age Years Quant. Quant. Change Share (%) Quan t. Share (%) Quan t. Share (%) Quan t , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,28 * Others represent the countries of imported spot LNG. Share (%) Quan t. Share (%) Quan t. Share (%) As seen at Table 2.1; Turkey is dependent on imports mainly for the gas coming from Russia. 8

22 Algeria 9,24% Nigeria Others* 2,63% 4,58% Azerbaijan 13,98% Russia 52,94% Iran 16,62% Graph 2.1: Share of Imported Natural Gas by Source Country in 2016 (%) % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Russia Iran Azerbaijan Algeria Nigeria Others* Graph 2.2: Changes in the Share of Source Countries for Natural Gas Import between * Others represent the countries of imported spot LNG. 9

23 The import amounts of companies that import natural gas between the years are shown in Table 2.2 according to the type of natural gas. The share of LNG imports in total imports has increased while the amount of pipeline gas imported in 2016 has declined compared to the amount of pipeline gas imported in Table 2.2: Import Quantities of Natural Gas Imported by Companies (Million Sm 3 ) and Shares (%) Between Gas Type Pipeline Gas LNG Total Year Quantity Share (%) Quantity Share (%) Quantity ,44 87, ,54 12, , ,41 85, ,87 14, , ,11 84, ,96 15, , ,48 83, ,68 16, ,17 The amount of natural gas imports by companies in 2016 is shown in Table 2.3. BOTAŞ imported 81,02 % of the total amount (pipeline gas and LNG totally) in Table 2.3: Import Amounts by the Companies in 2016 (Million Sm 3 ) Company Name Total Amount Percentage (%) BORU HATLARI İLE PETROL TAŞIMA A.Ş ,57 81,02 ENERCO ENERJİ SANAYİ VE TİCARET A.Ş ,42 4,52 BOSPHORUS GAZ CORPORATİON A.Ş ,14 4,4 AKFEL GAZ SANAYİ VE TİCARET A.Ş ,99 4,3 BATI HATTI DOĞALGAZ TİCARET A.Ş. 949,4 2,05 KİBAR ENERJİ A.Ş. 858,43 1,85 AVRASYA GAZ A.Ş. 418,85 0,9 EGE GAZ A.Ş. 252,46 0,54 SHELL ENERJİ A.Ş. 186,9 0,4 Total ,

24 EGE GAZ 0,54% ENERCO 4,52% KİBAR SHELL 1,85% 0,40% AKFEL GAZ 4,30% AVRASYA 0,90% BATI HATTI 2,05% BOSPHORUS 4,40% BOTAŞ 81,02% Graph 2.3: Share of Companies in Natural Gas Import in 2016 In 2016, natural gas import decreased by 4,28 % compared to Data is shown as monthly comparison at Table 2.4. and Graph 2.4. Table 2.4: Monthly Comparison of Imported Natural Gas between (Million Sm 3 ) January 4.536, , , ,94 February 4.095, , , ,11 March 3.889, , , ,55 April 3.447, , , ,46 May 3.512, , , ,71 June 3.143, , , ,14 July 3.404, , , ,08 August 3.268, , , ,20 September 3.526, , , ,63 October 3.545, , , ,31 November 3.936, , , ,71 December 4.962, , , ,35 Total , , , ,17 11

25 5.500, , , , , , Graph 2.4: Monthly Comparison of Imported Natural Gas between (Million Sm 3 ) As seen in Graph 2.5, in 2016, 7.627,68 million Sm 3 LNG (Long Term and Spot) was imported and this amount was 16,46 % of total import. LNG 16,46% Pipeline 83,54% Graph 2.5: Share of Pipeline Gas and LNG in Total Import in 2016 (%) While 95,42 % of natural gas imported in 2016 was as part of long term import license, 4,58 % was spot LNG. 12

26 Spot LNG 4,58% Long Term Import 95,42% Graph 2.6: Share of Natural Gas Imported by Long Term Import and Spot LNG in 2016 (%) Companies holding long term import licenses imported natural gas mostly from Russia and then Iran and Azerbaijan follow. Algeria 9,69% Nigeria 2,76% Azerbaijan 14,65% Russia 55,48% Iran 17,42% Graph 2.7: Amount of Imported Natural Gas by Long Term d Companies by Source Countries in 2016 (%) 13

27 As seen at Table 2.5, spot LNG was imported only 7 months in Table 2.5: Monthly Data of Long Term Import and Spot LNG Import in 2016 (Million Sm 3 ) Jan. Feb. March April May. June July Aug. Sep. Oct. Nov. Dec. Pipeline 4.232, , , , , , , , , , , ,16 LNG 639,71 478,82 551,4 467,19 325,47 430,78 393,98 391,26 381,29 232,05 530,6 681,41 Spot LNG 520,29 431,87 304, ,35 85,99 81, , , , , , , , , ,00 500,00 - Spot LNG Pipeline LNG Graph 2.8: Monthly Comparison of Long Term Import and Spot LNG Import in 2016 (Million Sm 3 ) 75,95 % of LNG import was from Algeria and 24,05 % was from Nigeria as part of long term agreements. Table 2.6: Long Term LNG Import between (Million Sm 3 ) Country Change (%) Algeria 3.684, , , ,31 9,41 Nigeria 1.273, , , ,65-1,67 Total 4.957, , , ,96 6,74 14

28 3.684, , , , , , , , Algeria Nigeria Graph 2.9: Long Term LNG Import Amounts by Source Countries between (Million Sm 3 ) Graph 2.10: Change in Spot LNG Import Amount between (Million Sm 3 ) Spot LNG import had 4,58 % share in total natural gas import in In addition, spot LNG was imported from 9 different countries. Among these countries, Qatar was the first with a share of 43,29 % and Trinidad and Tobago followed with a share of 15,64 %. Details are given at Table 2.7 and Graph

29 Table 2.7: Spot LNG Import by Countries in 2016 (Million Sm 3 ) Country Name Amount Qatar 919,29 Trinidad and Tobago 332,12 US 242,86 Nigeria 178,06 Egypt 99,47 Norway 90,41 France 90,17 Belgium 85,99 Holland 85,35 Total 2.123,72 Norvey 4,26% Nigeria 8,38% Trinidad and Tobago 15,64% US 11,44% Belgium 4,05% France 4,25% Holland 4,02% Egypt 4,68% Qatar 43,29% Graph 2.11: Spot LNG Import by Countries in 2016 (%) By the end of 2016, there were 42 companies holding import (spot LNG) license. Only 2 of them (BOTAŞ and EGEGAZ) imported spot LNG in out of the rest 40 companies sold gas supplied from domestic wholesale market. Remaining 28 companies had no operation within the scope of their licenses in

30 Spot LNG imported by BOTAS and EGEGAZ is shown below at Table 2.8 and Graph Table 2.8: Share of Spot LNG Importers between (%) EGE GAZ BOTAŞ ,46 91, ,66 62, ,83 86, ,8 97, ,62 75, ,36 94, ,79 89, ,89 88, % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% EGE GAZ BOTAŞ Graph 2.12: Share of Spot LNG Importers between (%) 17

31 2.2 Production-Import Evaluation In 2016, the amount of natural gas was 367,28 million Sm 3, extracted from domestic fields, cleaned and refined and then sent to transmission grid via collection lines, in other words offered for sale after production by wholesale licensed production companies. Increasing natural gas demand in Turkey and limited reserve and production to meet this demand necessitated natural gas import in 2016 as previous years. As seen at Graph 2.13, 0,79 % of total natural gas supply was domestic and the rest 99,21 % was met from different foreign sources by import licensees. Production 0,79% Import 99,21% Graph 2.13: Share of Total Natural Gas Supply by Origin in 2016(%) 18

32 2.3 Export Imported or domestically produced natural gas can be exported by export licensees to countries which are listed at their licenses. In 2016 as previous, only BOTAŞ operated as an export licensed company. BOTAS has started natural gas export to Greece with the completion of Turkey-Greece Natural Gas Interconnector on 18/11/2007 and natural gas amounts exported to Greece are given at Table 2.9 by years. Table 2.9: Exported Natural Gas Amounts between (Million Sm 3 ) Years Quantities 30,8 435,8 708,5 648, ,63 623,94 674, , , ,63 623,94 674,68 435,8 30, Graph 2.14: Yearly Natural Gas Export Amounts (Million Sm 3 ) 19

33 Table 2.10: Monthly of Natural Gas Export Amounts by Years (Million Sm 3 ) Jan. Feb. March Apr. May June July Aug. Sep. Oct. Nov. Dec. Total ,3 45,4 33,8 59,5 37,8 67,5 61,7 59,7 67,8 72,8 71,9 58,2 682, ,3 62,4 58,2 37,7 26,4 52,4 70,1 74,9 70,6 22,6 33,6 54,6 632, ,3 46,9 67,6 52,1 52, ,2 72,7 61,2 45,1 33,7 67,4 623, ,9 15,2 66,2 70,8 72,2 70,4 36,3 61,1 59,1 58,3 39,3 74,7 674, Jan. Feb. March Apr. May June July Aug. Sep. Oct. Nov. Dec Graph 2.15: Monthly Comparison of Natural Gas Exported between (Million Sm 3 ) 20

34 3. STORAGE All types of natural gas storage was necessary to compensate natural gas deficit caused by daily and seasonal imbalances, decreasing or halting of natural gas supply to keep the system technically safe. Monthly total storage amounts of existing storage facilities (including LNG terminals) in 2016 are given at table below. Table 3.1: Month End Natural Gas Stock Amounts by Years (Million Sm 3 ) Jan. Feb. March Apr. May June July August Sep. Oct. Nov. Dec , , , , , , , , , , , , ,03 771,25 760, , , , , , , , , , , ,49 599,13 249,76 644,68 927, , , , , , , , ,30 884, , , , , , , , , , , , , , , ,00 0,00 Jan. Feb. March Apr. May June July August Sep. Oct. Nov. Dec. Graph 3.1: Month End Natural Gas Stock Amounts by Years (Million Sm 3 ) As seen at Graph 3.1, stocks started to increase by early May and started to decrease rapidly by the end of November. Evaluation of stocks with import and consumption in 2016 is given at Graph

35 7.000, , , , , , ,00 0,00 Storage Import Consumption Graph 3.2: Comparison of Monthly Import/Consumption/Stock Amounts in 2016 (Million Sm 3 ) As seen at Graph, in summer months with similar import amounts, with the decreasing consumption, injection started in May and storage stock levels started to increase. Although import amounts increase at winter months, injection decrease because of heavy consumption. 3.1 Underground Gas Storage There were 5 companies granted underground natural gas storage licenses. The ownership and operation rights of the only operating facility located in Silivri district of Istanbul, transferred from TPAO, to BOTAŞ on 01/09/2016. The other projects had not came into operation by the end of The Silivri storage facility of BOTAŞ had served to 8 suppliers, 7 of which were import licensees and the other one was a wholesale licensees. 3.2 LNG Storage Marmara Ereglisi LNG Terminal which became operational in 1994 and currently owned and operated by BOTAS, and EGEGAZ LNG Terminal built in Aliaga/İzmir in 2001 and became operational in 2006 were facilities established for unloading LNG ships, storing LNG, gasification of imported LNG to dispatch into transmission system and meeting daily and seasonal imbalances. 22

36 The activities carried out in the FSRU terminals in 2016 were also counted as storage activities and the facility owned and operated by Etki Liman İşl. Doğal Gaz İth. ve Tic. A.Ş. became operational in December The LNG amounts delivered to the road tankers and sent to the national transmission grid by the LNG facilities in 2016 are depicted below separately in monthly basis. Table 3.2: Delivered Natural Gas Amounts from LNG Terminals in 2016 (Million Sm 3 ) January February March April May June July August September October November December Total Sent to main transmission lines Delivered to road tankers 1.100,12 930,33 809,87 394,77 298,30 283,53 369,01 392,06 384,11 338,33 539, , ,79 38,89 34,31 38,32 41,28 47,39 49,15 45,20 57,40 46,17 60,00 57,64 50,76 566,50 Total 1.139,00 964,64 848,19 436,05 345,69 332,68 414,20 449,46 430,28 398,33 597, , ,29 23

37 4. WHOLESALE Sale of imported or domestically produced natural gas to, import, export, distribution, other wholesale companies and to eligible consumers was performed by wholesale licensees. Import licensees could perform wholesale activity without getting a wholesale license. As seen at Graph 4.1, natural gas supply of Turkey in 2016 was realized as ,45 million Sm 3 and 80,39 % of this amount was met by BOTAŞ, 18,83 % was met by other import licensed companies and 0,78 % was met by producer wholesale companies. Other import licensed company 18,83% Producer wholesale companies 0,79% BOTAŞ 80,39% Graph 4.1: Share of Import and Production Companies in Natural Gas Supply in 2016 (%) Liberal market model projected in the Law is based on the ground of creating competition at wholesale facilities which have competitive dynamics. Within this scope, it is important that number of market players should be increased and dominant structures should be avoided. By the end of 2016, there were 47 wholesale licensed companies. 9 of them were natural gas production companies, while 17 of them were not operational within the scope of their license. As known, except wholesale licensed companies, import licensed companies can also perform wholesale activities. Within this scope, when import licensed companies are analyzed; 24

38 - By the end of 2016, there were 42 companies holding import (spot LNG) license. Only 2 of them (BOTAŞ and EGEGAZ) imported spot LNG in out of the rest 40 companies sold gas supplied from domestic wholesale market. Remaining 28 companies had no operation within the scope of their licenses in BOTAŞ and other 7 private import companies (Shell, Avrasya Gas, Enerco, Kibar, West Line, Akfel and Bosphorus Gas) who imported gas by long term import agreements performed wholesale of gas imported and produced domestically. 4.1 by Pipelines Some of these companies were natural gas production companies, some of them were natural gas import companies and some of them were wholesale companies who did not produce or import but purchased natural gas from suppliers and resold the gas. Sales as pipeline gas are shown at Table 4.1 according to license types. Table 4.1: Amounts of s as Pipeline Gas According to Types (Million Sm 3 ) Type Number of Companies selling to licensed companies Sale Amounts to d Companies Long Term Import , ,42 Spot (LNG) Import ,85 (Producer) 9 164,16 Total ,83 Proportional distribution of pipeline sales to licensed companies is given at Graph below according to license types. 25

39 29,55 % 43,84% 0,42% Import 19,36% Transmission * 5,21% Export 1,58% *Owner of Transmission s; purchases gas from the market as balance Gas Internal Use Gas or Stock Gas. **Owners of storage licenses purchase gas from the market to be used at the warehouse operation. Storage ** 0,04% Graph 4.2: Proportional of Pipeline s to d Companies According to Types (%) 4.2 of LNG When transmission of natural gas by pipelines is not possible or feasible because of technical and economic reasons, natural gas is utilized as LNG and it is carried to final consumers by road tankers. Some of imported natural gas was sold again in LNG form and sold to market by wholesale licensed companies. Amount of natural gas sold in the form of LNG was 572,62 million Sm 3. In 2016, gas sale to final consumers in the form of LNG was realized by 7 companies, and share of total LNG sales is shown at Table 4.2. Table 4.2: Amounts of LNG Sales According to Types (Million Sm 3 ) Type Number of Companies Selling to d Companies Sale Amounts to d Companies Spot (LNG) Import 1 338,38 Long Term Import 1 228,12 5 6,11 Total 7 572,62 26

40 4.3 Natural Gas Trade between d Companies Operating in Natural Gas Market Amount of gas traded between companies operating in natural gas market in 2016 is given at Table 4.3. Table 4.3: Amount of Gas Traded between Companies Operating in Natural Gas Market in 2016 (Million Sm 3 ) Type Quantity Percentage Import ,76 78, ,69 21,15 47,81 0,11 license 27,66 0,06 Total ,93 100,00 In 2016, 99,82 % of sales made to license holders were performed by companies that have import and wholesale licenses. The share of the import licensed companies in sales was 78,67 % Aforementioned ,93 million Sm 3 gas was supplied by 75 companies and 10 companies which supplied the largest amounts are given at Table 4.4. Table 4.4: Amount and Share of 10 Companies which Supply the Largest Amounts to Companies Operating in Natural Gas Market (Million Sm 3 ) Amount of Share Trade Name Sales (%) BOTAŞ (BORU HATLARI İLE PETROL TAŞIMA ANONİM ) ,18 40,88 ENERCO ENERJİ SANAYİ VE TİCARET ANONİM 2.715,86 6,29 AKFEL ENERJİ TİCARET ANONİM 2.513,43 5,82 EWE ENERJİ ANONİM 2.507,58 5,81 AKFEL GAZ SANAYİ VE TİCARET ANONİM 2.398,79 5,56 BOSPHORUS GAZ CORPORATİON ANONİM 1.912,97 4,43 SOCAR TURKEY PETROKİMYA ANONİM 1.458,23 3,38 ZORLU DOĞAL GAZ İTHALAT İHRACAT VE TOPTAN TİCARET ANONİM 1.273,83 2,95 DOĞAL ENERJİ İTHALAT ANONİM 1.197,58 2,77 BATI HATTI DOĞALGAZ TİCARET ANONİM 920,35 2,13 27

41 The amount of gas purchases by licensed companies operating in natural gas market from other licensed companies in 2016 is given at Table 4.5. Table 4.5: Amount of Gas Purchases by d Companies Operating in Natural Gas Market from Other d Companies in 2016 (Million Sm 3 ) Type Quantity Percentage ,96 44, ,65 32,17 Import 9.781,36 23,14 220,06 0,52 Total , In 2016, distribution license holders were the largest purchaser of natural gas with 44,16 %. license holders were followed by wholesale license holders with 32,17 %. There were 129 companies which purchased natural gas from domestic market and 10 companies which purchased the largest amounts are listed at Table 4.6. Table 4.6: Amount and Share of 10 Companies which Purchased the Largest Amounts from Companies Operating in Natural Gas Market (Million Sm 3 ) Company Amount of Purchased Gas Share (%) İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 5.794,18 13,71 EWE ENERJİ ANONİM 3.123,48 7,39 AKFEL ENERJİ TİCARET ANONİM 2.513,43 5,95 BAŞKENT DOĞALGAZ DAĞITIM GAYRİMENKUL YATIRIM ORTAKLIĞI ANONİM 2.465,37 5,83 SOCAR TURKEY PETROKİMYA ANONİM 1.458,23 3,45 DOĞAL ENERJİ İTHALAT ANONİM 1.314,45 3,11 ZORLU DOĞAL GAZ İTHALAT İHRACAT VE TOPTAN TİCARET A.Ş ,97 3,03 SOCAR GAZ TİCARETİ ANONİM 1.248,05 2,95 BOTAŞ (BORU HATLARI İLE PETROL TAŞIMA ANONİM ) 1.151,85 2,73 AYGAZ DOĞAL GAZ TOPTAN SATIŞ ANONİM 1.055,71 2,50 28

42 5. COMPRESSED NATURAL GAS () Activities performed by licensed companies country wide according to their licenses are listed below: -Purchasing natural gas from well head, national transmission network or city distribution system and suppliers and then compressing of gas and filling to pressured containers and sale, -Transmission of compressed natural gas intercity by special vehicles, -Sale of natural gas supplied from sale stations and/or purchased from well head of producer wholesale companies and compress with equipment on the transportation vehicles and filled to pressured containers by decreasing pressure to areas where transmission networks do not reach. In 2016, 220,06 million Sm 3 natural gas was purchased by licensed companies and 2,25 % of this amount was LNG. Sale shares of supplier companies to licensed companies according to their license type are given at Graph ,10% Licence 12,21% Licence 21,12% Import Licence 58,57% Graph 5.1: Sale shares of Supplier Companies to (Sale) d Companies According to Their Type (%) (Transmission and ) d companies purchased 22,49 million Sm 3 natural gas from (Sale) d companies. 29

43 Transmission (Final Consumers) 11,27% Sales (Final Consumers) 88,73% Graph 5.2: Share of Sales to Final Consumer by Types in 2016 (%) sale amounts to final consumers between are shown at Table 5.1. Table 5.1: Sale Amounts to Final Consumers between (Million Sm 3 ) Years Amount 36,5 33,9 46,2 55,5 54,9 76,6 120,09 178,93 191,78 30

44 6. TRANSMISSION Transmission of natural gas via pipelines is conducted by BOTAŞ in Turkey. According to the Natural Gas Market Law, it is projected that public legal entity character of transmission company, which will be one of the companies ensued as the result of restructuring of BOTAŞ as a horizontally integrated legal entity, will continue. The possibility of third party access to network, in other words companies except the owner or the operator of network can carry their natural gas via transmission network, which means they can enter to market, results in a more competitive market. Within the scope of related EU Directives and regulations about third party access to network, third party access to transmission network is regulated and the reasons of refusal to third party access to network are ruled. With the aim of defining procedures and principles of regulations related about network operations prepared by transmission companies, 26/10/2002 dated and numbered Natural Gas Market Transmission Network Operating Instructions dated 26/10/2002 and numbered 24918, was published in the Official Gazette. These instructions contain procedures and principles related items listed below; -Entry to system as part of regulations related network operation prepared by transmission companies which are operating via natural gas pipelines. -Transportation amount reporting and transportation service programming. -Transportation amount determination, cut process, delivery controlling, system balancing, communication system, capacity assignment, delivery and measurement of natural gas. 6.1 Transmission via Pipelines In 2016, total 48,69 billion Sm 3 natural gas entry was had been made by import and wholesale companies operating in at natural gas market to transmission network from 10 Entry Points (Malkoçlar, M. Ereğlisi LNG Terminali, Durusu, Doğubeyazıt-Gürbulak, Azerbaycan- Türkgözü, EGEGAZ, TPAO Silivri, TPAO Akçakoca, TEMİ, ETKİ LNG). 81,01 % of this amount was had been realized by BOTAŞ and 18,99 % was had been realized by private sector import and wholesale companies. On the other hand, in 2016, total billion Sm 3 natural gas withdrawal was has realized from transmission network. Peak entry and withdrawal amounts were has realized at winter months in 2016 in which natural gas demand is high and monthly distribution of total natural gas amounts which entered to transmission network and withdrawn from there are seen at Graph

45 Natural Gas Amounts which Entered to Transmission Network Natural Gas Amounts which withdrawn from Transmission Network Graph 6.1: Monthly of Total Natural Gas Amounts Entered into Transmission Network and Withdrawn from Transmission Network (Million Sm 3 ) In addition, in 2016, the highest daily withdraw (peak demand) from natural gas transmission grid realized as 218,14 million Sm 3 on 19/01/2016. The distribution of the highest daily withdrawals realized in every month is given at Graph 6.2. Table 6.1: The highest Daily Withdrawal (Peak Demand) from Natural Gas Transmission Network by Month (Million Sm 3 ) Jan. Feb. March April May June July August Sep. Oct. Nov. Dec. The Highest Daily Withdrawal 218,14 194,74 173,13 125,31 112,35 105,35 109,43 111,40 102,51 141,69 189,75 207,92 32

46 250,00 200,00 150,00 100,00 50,00 0,00 Graph 6.2: The Highest Daily Withdrawal (Peak Demand) from Natural Gas Transmission Network by Month in 2016 (Million Sm 3 ) In 2016, natural gas which enters transmission network from ten different entry points was transported by 36 shippers in natural gas transmission network. To talk about the commercial activity of shippers in transmission network, virtual trade realized by shippers at the National Balancing Point (NBP) of transmission network and at transfer points was totally 17,84 billion Sm % of virtual trade volume was at NBP and 48 % was at transfer points. 94 % of virtual trade was conducted by private sector shippers and 6 % was conducted by BOTAŞ. Monthly breakdown of virtual trade volumes in 2016 is shown at Graph , , , ,00 500,00 0,00 Transfer Points UDN Total Graph 6.3: Monthly of Virtual Trade Volumes in 2016 (Million Sm 3 ) 33

47 Shippers have caused 2.934,08 million Sm 3 of imbalance in transmission grid in The amount of net imbalance during the year was 1.046,80 million Sm 3. Imbalance increased especially in winter months when natural gas demand was high and in summer months when electricity demand was high because of cooling demand. 67,83 % of imbalance was in negative direction while the rest was in positive direction. Monthly distribution of positive, negative and net imbalances are depicted on Graph ,00 300,00 250,00 200,00 150,00 100,00 50,00 0,00 Gas Entry into System Gas Withdrawal from System Net Imbalance Amount Graph 6.4: Monthly of Imbalance Amount in 2016 (Million Sm 3 ) End-of-day trade volume, which shippers do to eliminate their imbalances as an extra tool after gas day, was 798,94 million Sm 3 in The monthly distribution of end-of-day trade in 2016 is shown at Graph 6.5. It could be inferred that monthly distribution of imbalance amounts of transmission network was in parallel with monthly distribution of end-of-day trade in ,00 300,00 250,00 200,00 150,00 100,00 50,00 0,00 End of Day Trade Amount Gas Withdrawal from System Graph 6.5: Monthly of End-of-Day Trade in 2016 (Million Sm 3 ) 34

48 6.2 LNG Transmission According to the Law, transmission activity could be also conducted by LNG transportation vehicles other than national transmission grid under the condition of getting license from the Authority. In 2016, 702,56 million Sm 3 of LNG was carried by ten transmission (LNG) licensee. The transmitted LNG amounts on monthly and yearly basis are given at table below. Table 6.2: Monthly Transmitted LNG Amount by Years (Million Sm 3 ) Jan. Feb March April May June July August Sept. Oct. Nov. Dec. Total ,2 44,3 51,3 55, ,4 82,7 70,9 86,8 80,3 77,7 62, ,09 45,5 51,05 49,26 55,73 53,86 55,96 63,35 66,11 61,74 62,16 51,97 666, ,01 40,74 46,15 52,46 58,31 61,06 59,3 67,08 57,05 71,8 66,31 62,96 691, ,14 44,27 48,57 50,17 59,64 62,01 55,76 69,44 57,61 73, ,55 702,56 * The amounts of natural gas that LNG Conveying Companies contract to each other are included in the table. Table 6.3: Monthly Transmitted LNG Amount by Companies (Million Sm 3 ) Company Jan. Feb. March Apr. May June July Aug. Sep. Oct. Nov. Dec. Total İPRA ENERJİ ANONİM 15,99 13,58 14, ,98 14,34 14,4 15,8 15,92 16,4 15,1 15,83 180,5 OMV GAZ İLETİM ANONİM 9,73 9,14 10,11 9,55 11,87 13,35 11,33 14,87 11,64 16,54 16,38 13,38 147,9 ULTRANS TAŞIMACILIK SANAYİ VE TİCARET LİMİTED AYGAZ DOĞAL GAZ İLETİM ANONİM HABEL SINAİ VE TIBBİ GAZLAR İSTİHSAL ENDÜSTRİSİ ANONİM EGELOG DOĞALGAZ AKARYAKIT TAŞIMACILIK VE DEPOLAMA TURİZM LİMİTED AK-CAN DOĞAL GAZ İLETİM LİMİTED ENERJİ GRUP İLETİM NAKLİYAT VE TAŞIMACILIK ANONİM ALFAGAZ PETROL ÜRÜNLERİ İNŞAAT SANAYİ VE DIŞ TİCARET LİMİTED VENTES LOJİSTİK ANONİM 6,44 5,72 6,34 9,17 12,95 13,66 11,48 14,33 11,5 14,96 15,02 13,03 134,59 5,71 5,63 6,18 6,69 7,88 8,88 8,42 11,49 8,75 12,01 10,45 8,23 100,32 5,05 4,4 4,79 6,63 6,54 6,97 5,48 7,2 5,93 7,8 7,36 6,11 74,27 0,72 0,69 1,51 2,77 2,59 2,61 2,17 2,33 1,03 1,56 1,79 1,51 21,27 1,39 1,22 1,08 1,14 1,02 1,52 1,75 2,32 1,61 2,76 2,58 2,29 20,67 1,42 1,2 0,96 0,53 0,8 0,68 0,73 1,09 1,23 1,38 1,31 2,16 13,5 2,69 2,68 3,46 0, , ,002 0,001 0,001 0,001 0,002 0,001 0,002 0,001 0,001 0,01 Total 49,14 44,27 48,57 50,17 59,64 62,01 55,76 69,44 57,61 73, ,55 702,56 35

49 Graph 6.6: Monthly Transmitted LNG Amount by Years (Million Sm 3 ) With the assumption of equality of the amounts transmitted and consumed LNG were same,as seen at Graph 6.7, LNG consumption had decreased till 2014 and remained flat after that year with a slight growth , ,00 800,00 600,00 400,00 200,00 0, Graph 6.7: Comparison of Transmitted LNG Amount by Years (Million Sm 3 ) 36

50 7. DISTRIBUTION 7.1 Tenders According to the Natural Gas Market Law, natural gas distribution service is provided by the companies which win the tender for the Regions defined by the Authority. By the end of 2015, the number of Companies licensed by the Authority was 69, but this number decreased to 68 due to the merger of two distribution companies in While the number of natural gas distribution zones was 66 in 2015, by the end of 2016, natural gas supply was provided to 68 distribution regions. In 2016, the number of provinces to which gas supplied via distribution network increased from 71 to 76 compared to the previous year. 7.2 Network Investment Performance By the end of 2016, total investment amount at 68 distribution regions to which natural gas was supplied was 13,2 Billion TL (excluding VAT). By the end of 2016, steel pipeline length was km, polyethylene pipeline length was km, service line length was km and number of service lines was which was constructed by distribution companies. Total investment amounts (except operational cost and VAT) realized by natural gas distribution companies in Turkey, lengths of steel and polyethylene pipelines are shown at Table 7.1. Table 7.1: Total Investments, Lengths of Steel and Polyethylene Pipelines in Regions Constructed by Companies Company AGDAŞ ADAPAZARI GAZ DAĞITIM ANONİM AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN DELTA DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN GEPA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MARDİN DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MUĞLA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN SİNOP DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCANGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKSA AFYON DOĞAL GAZ DAĞITIM ANONİM AKSA BALIKESİR DOĞAL GAZ DAĞITIM ANONİM Length of Steel Pipeline (m) Length of Polythene Pipeline (m) Amount of Investment (TL)

51 Company Length of Steel Pipeline (m) Length of Polythene Pipeline (m) Amount of Investment (TL) AKSA BANDIRMA DOĞAL GAZ DAĞITIM ANONİM AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM AKSA ELAZIĞ DOĞALGAZ DAĞITIM ANONİM AKSA GAZ DAĞITIM ANONİM AKSA GEMLİK DOĞAL GAZ DAĞITIM ANONİM AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM AKSA MALATYA DOĞAL GAZ DAĞITIM ANONİM AKSA MANİSA DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM ANONİM AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM AKSA SİVAS DOĞAL GAZ DAĞITIM ANONİM AKSA ŞANLIURFA DOĞAL GAZ DAĞITIM ANONİM AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM AKSA VAN DOĞAL GAZ DAĞITIM ANONİM ARMADAŞ ARSAN MARAŞ DOĞAL GAZ DAĞITIM ANONİM ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM BAHÇEŞEHİR GAZ DAĞITIM ANONİM BAŞKENT DOĞALGAZ DAĞITIM GAYRİMENKUL YATIRIM ORTAKLIĞI ANONİM BURSA ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM ÇİNİGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM

52 Company Length of Steel Pipeline (m) Length of Polythene Pipeline (m) Amount of Investment (TL) ÇORDAŞ ÇORLU DOĞALGAZ DAĞITIM ANONİM ÇORUM DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM DİYARBAKIR DOĞAL GAZ DAĞITIM ANONİM DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM ENERYA AKSARAY GAZ DAĞITIM A.Ş ENERYA ANTALYA GAZ DAĞITIM A.Ş ENERYA AYDIN GAZ DAĞITIM ANONİM ENERYA DENİZLİ GAZ DAĞITIM ANONİM ENERYA EREĞLİ GAZ DAĞITIM ANONİM ENERYA ERZİNCAN GAZ DAĞITIM ANONİM ENERYA KAPADOKYA GAZ DAĞITIM A.Ş ENERYA KARAMAN GAZ DAĞITIM ANONİM ENERYA KONYA GAZ DAĞITIM A.Ş ESGAZ ESKİŞEHİR ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İNEGÖL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZGAZ İZMİT GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZMİR DOĞALGAZ DAĞITIM TİCARET VE TAAHHÜT ANONİM KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED KAYSERİGAZ KAYSERİ DOĞALGAZ DAĞITIM PAZARLAMA VE TİCARET ANONİM KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET ANONİM KIZILCAHAMAM DOĞALGAZ DAĞITIM ANONİM PALEN ENERJİ DOĞAL GAZ DAĞITIM END. VE TİCARET ANONİM

53 Company Length of Steel Pipeline (m) Length of Polythene Pipeline (m) Amount of Investment (TL) PALGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM POLGAZ POLATLI DOĞAL GAZ DAĞITIM ANONİM SAMGAZ DOĞAL GAZ DAĞITIM ANONİM SELÇUK DOĞAL GAZ DAĞITIM ANONİM SERHAT DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM UDAŞ UŞAK DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM Total

54 Table 7.2: Length of Service Lines and Number of Service Lines in Regions Constructed by Companies Company Length of Numbers of Service Service Line Line(m) AGDAŞ ADAPAZARI GAZ DAĞITIM ANONİM AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN DELTA DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN GEPA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MARDİN DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MUĞLA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN SİNOP DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCANGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKSA AFYON DOĞAL GAZ DAĞITIM ANONİM AKSA BALIKESİR DOĞAL GAZ DAĞITIM ANONİM AKSA BANDIRMA DOĞAL GAZ DAĞITIM ANONİM AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM AKSA ELAZIĞ DOĞALGAZ DAĞITIM ANONİM AKSA GAZ DAĞITIM ANONİM AKSA GEMLİK DOĞAL GAZ DAĞITIM ANONİM AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM AKSA MALATYA DOĞAL GAZ DAĞITIM ANONİM AKSA MANİSA DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM ANONİM AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM AKSA SİVAS DOĞAL GAZ DAĞITIM ANONİM AKSA ŞANLIURFA DOĞAL GAZ DAĞITIM ANONİM AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM AKSA VAN DOĞAL GAZ DAĞITIM ANONİM ARMADAŞ ARSAN MARAŞ DOĞAL GAZ DAĞITIM ANONİM

55 Company Numbers of Service Line Length of Service Line(m) ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM BAHÇEŞEHİR GAZ DAĞITIM ANONİM BAŞKENT DOĞALGAZ DAĞITIM GAYRİMENKUL YATIRIM ORTAKLIĞI ANONİM BURSA ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM ÇİNİGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM ÇORDAŞ ÇORLU DOĞALGAZ DAĞITIM ANONİM ÇORUM DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM DİYARBAKIR DOĞAL GAZ DAĞITIM ANONİM DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM ENERYA AKSARAY GAZ DAĞITIM A.Ş ENERYA ANTALYA GAZ DAĞITIM A.Ş ENERYA AYDIN GAZ DAĞITIM ANONİM ENERYA DENİZLİ GAZ DAĞITIM ANONİM ENERYA EREĞLİ GAZ DAĞITIM ANONİM ENERYA ERZİNCAN GAZ DAĞITIM ANONİM ENERYA KAPADOKYA GAZ DAĞITIM A.Ş ENERYA KARAMAN GAZ DAĞITIM ANONİM ENERYA KONYA GAZ DAĞITIM A.Ş ESGAZ ESKİŞEHİR ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İNEGÖL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZGAZ İZMİT GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZMİR DOĞALGAZ DAĞITIM TİCARET VE TAAHHÜT ANONİM KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED KAYSERİGAZ KAYSERİ DOĞALGAZ DAĞITIM PAZARLAMA VE TİCARET ANONİM KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET ANONİM

56 Company Length of Numbers of Service Service Line Line(m) KIZILCAHAMAM DOĞALGAZ DAĞITIM ANONİM PALEN ENERJİ DOĞAL GAZ DAĞITIM END. VE TİCARET ANONİM PALGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM POLGAZ POLATLI DOĞAL GAZ DAĞITIM ANONİM SAMGAZ DOĞAL GAZ DAĞITIM ANONİM SELÇUK DOĞAL GAZ DAĞITIM ANONİM SERHAT DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM UDAŞ UŞAK DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM Total Table 7.3: Number of Subscribers by Provinces by the End of 2016 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * ADANA AKSA GAZ DAĞITIM ANONİM ADIYAMAN AKMERCANGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AFYONKARAHİSAR AKSA AFYON DOĞAL GAZ DAĞITIM A.Ş AKSARAY ENERYA AKSARAY GAZ DAĞITIM A.Ş AMASYA AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM ANKARA BAŞKENT DOĞALGAZ DAĞITIM

57 Company GAYRİMENKUL YATIRIM ORTAKLIĞI ANONİM KIZILCAHAMAM DOĞALGAZ DAĞITIM ANONİM POLGAZ POLATLI DOĞAL GAZ DAĞITIM ANONİM Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * ANTALYA ENERYA ANTALYA GAZ DAĞITIM A.Ş ARDAHAN KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED AYDIN ENERYA AYDIN GAZ DAĞITIM ANONİM BALIKESİR AKSA BALIKESİR DOĞAL GAZ DAĞITIM ANONİM AKSA BANDIRMA DOĞAL GAZ DAĞITIM ANONİM AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM A.Ş BARTIN AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET A.Ş BATMAN SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM BAYBURT AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM BİLECİK AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM BİNGÖL DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM BİTLİS

58 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM BOLU AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM BURDUR TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM BURSA AKSA GEMLİK DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM ANONİM ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM BURSA ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM İNEGÖL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM ÇANAKKALE AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM ÇANKIRI KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM ÇORUM ÇORUM DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM DENİZLİ ENERYA DENİZLİ GAZ DAĞITIM ANONİM DİYARBAKIR DİYARBAKIR DOĞAL GAZ DAĞITIM ANONİM DÜZCE AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM

59 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * EDİRNE TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM ELAZIĞ AKSA ELAZIĞ DOĞALGAZ DAĞITIM A.Ş ERZİNCAN ENERYA ERZİNCAN GAZ DAĞITIM A.Ş ERZURUM PALEN ENERJİ DOĞAL GAZ DAĞITIM END. VE TİCARET ANONİM ESKİŞEHİR AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM ESGAZ ESKİŞEHİR ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM GAZİANTEP GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM GİRESUN AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM GÜMÜŞHANE AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM HATAY AKSA GAZ DAĞITIM ANONİM IĞDIR SERHAT DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM ISPARTA TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM İSTANBUL BAHÇEŞEHİR GAZ DAĞITIM A.Ş İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZMİR

60 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * İZMİR DOĞALGAZ DAĞITIM TİCARET VE TAAHHÜT ANONİM KAHRAMANMARAŞ ARMADAŞ ARSAN MARAŞ DOĞAL GAZ DAĞITIM ANONİM KARABÜK KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KARAMAN ENERYA KARAMAN GAZ DAĞITIM ANONİM KARS KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED KASTAMONU KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KAYSERİ KAYSERİGAZ KAYSERİ DOĞALGAZ DAĞITIM PAZARLAMA VE TİCARET A.Ş KIRIKKALE KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET ANONİM KIRKLARELİ TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM KIRŞEHİR KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET A.Ş SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KİLİS GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM KOCAELİ ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM İZGAZ İZMİT GAZ DAĞITIM SANAYİ VE

61 Company TİCARET ANONİM Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * PALGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KONYA ENERYA EREĞLİ GAZ DAĞITIM ANONİM ENERYA KONYA GAZ DAĞITIM ANONİM SELÇUK DOĞAL GAZ DAĞITIM ANONİM KÜTAHYA ÇİNİGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM MALATYA AKSA MALATYA DOĞAL GAZ DAĞITIM ANONİM MANİSA AKSA MANİSA DOĞAL GAZ DAĞITIM ANONİM MARDİN AKMERCAN MARDİN DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM MERSİN AKSA GAZ DAĞITIM ANONİM MUĞLA AKMERCAN MUĞLA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM MUŞ DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM NEVŞEHİR ENERYA KAPADOKYA GAZ DAĞITIM ANONİM NİĞDE ENERYA KAPADOKYA GAZ DAĞITIM ANONİM ORDU

62 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM OSMANİYE AKSA GAZ DAĞITIM ANONİM RİZE AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM SAKARYA AGDAŞ ADAPAZARI GAZ DAĞITIM ANONİM AKMERCAN GEPA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM SAMSUN AKMERCAN DELTA DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM SAMGAZ DOĞAL GAZ DAĞITIM ANONİM SİİRT SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM SİVAS AKSA SİVAS DOĞAL GAZ DAĞITIM ANONİM ŞANLIURFA AKSA ŞANLIURFA DOĞAL GAZ DAĞITIM ANONİM TEKİRDAĞ ÇORDAŞ ÇORLU DOĞALGAZ DAĞITIM ANONİM TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM TOKAT AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM TRABZON AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM UŞAK

63 Company Number of Subscribers* Number of Household Subscribers * Number of Eligible Consumers * UDAŞ UŞAK DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM VAN AKSA VAN DOĞAL GAZ DAĞITIM ANONİM YALOVA ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM YOZGAT SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM ZONGULDAK AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET A.Ş AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM Total * The Board Resolutions, 5920 dated and 17/12/2015 numbered and 18/12/2014 dated and 5362 numbered, regarding the limit of being a eligible consumer for the Natural Gas Market to be implemented throughout 2016", it was decided to continue to apply the same limit. In Board Decision 5362; it is stated that all consumers are regarded as eligible consumer except for the household consumers (residential consumers) and m3 is the limit of the eligible consumers for these households. According to the Board Decision mentioned above, for the distribution companies which licensed in consequence of tender process, the consumption limit of eligible consumers shall be applied as stated in their tender specifications for the first 5 years period beginning from their licensing date. Thus, for only this 5 years period, the consumers other than households may be regarded as subscribers, that is why the consumption of subscribers and the consumption of household subscribers are depicted separately on the table. ** According to the Board Decision mentioned above, in the distribution regions of the distribution companies that have completed their first 5 years, household consumers (residential consumers) who consume more than the limit of m3 could achieve to be eligible consumer. Thus, the number of eligible consumers also includes some household consumer. 50

64 Number of Subscribers 96,12% Number of Eligible Consumers 3,88% Graph 7.1: Share of Subscribers and Eligible Consumers by the End of 2016 (%) Table 7.4: Consumption of Subscribers and Eligible Consumers by Companies by the End of 2016 (Million Sm 3 ) Company AGDAŞ ADAPAZARI GAZ DAĞITIM ANONİM AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN DELTA DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN GEPA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MARDİN DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MUĞLA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM Consumption of Subscribers* Consumption of Household Subscribers * Consumption of Eligible Consumers * 152,99 152,99 68,65 47,98 29,15 2,09 28,72 25,35 5,94 8,70 8,12 1,70 0,00 0,00 2,32 2,92 2,74 0,01 51

65 Company AKMERCANGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKSA AFYON DOĞAL GAZ DAĞITIM ANONİM AKSA BALIKESİR DOĞAL GAZ DAĞITIM ANONİM AKSA BANDIRMA DOĞAL GAZ DAĞITIM ANONİM AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM AKSA ELAZIĞ DOĞALGAZ DAĞITIM ANONİM AKSA GAZ DAĞITIM ANONİM AKSA GEMLİK DOĞAL GAZ DAĞITIM ANONİM AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM AKSA MALATYA DOĞAL GAZ DAĞITIM ANONİM AKSA MANİSA DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM ANONİM AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM AKSA SİVAS DOĞAL GAZ DAĞITIM ANONİM AKSA ŞANLIURFA DOĞAL GAZ DAĞITIM ANONİM AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM AKSA TRAKYA DOĞAL GAZ DAĞITIM ANONİM Consumption of Subscribers* Consumption of Household Subscribers * Consumption of Eligible Consumers * 47,00 47,00 14,48 49,87 49,87 36,57 78,78 78,78 35,96 28,82 28,82 13,54 87,33 87,33 221,69 69,03 69,03 31,32 85,59 85,59 131,81 90,37 90,37 39,10 131,78 131,78 189,89 19,12 19,12 6,15 19,32 19,30 12,12 71,93 71,93 31,79 123,95 123,95 67,48 82,49 82,49 79,92 28,79 28,79 50,44 55,12 55,12 16,04 97,12 97,12 49,36 52,57 52,57 76,26 113,99 113,99 56,64 10,95 10,95 39,53 52

66 Company Consumption of Subscribers* Consumption of Household Subscribers * Consumption of Eligible Consumers * AKSA VAN DOĞAL GAZ DAĞITIM ANONİM 47,47 47,47 32,68 ARMADAŞ ARSAN MARAŞ DOĞAL GAZ DAĞITIM ANONİM 78,43 78,43 156,56 ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM 82,61 82,61 48,74 BAHÇEŞEHİR GAZ DAĞITIM ANONİM 11,89 11,89 10,84 BAŞKENT DOĞALGAZ DAĞITIM GAYRİMENKUL YATIRIM ORTAKLIĞI 1581, ,05 924,04 ANONİM BURSA ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM 554,50 554,50 233,49 ÇİNİGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 92,50 92,50 163,81 ÇORDAŞ ÇORLU DOĞALGAZ DAĞITIM ANONİM 69,91 69,91 70,57 ÇORUM DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 78,22 78,22 43,39 DİYARBAKIR DOĞAL GAZ DAĞITIM ANONİM 104,43 104,43 34,57 DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM 0,64 0,24 0,00 ENERYA AKSARAY GAZ DAĞITIM ANONİM 40,96 40,96 21,16 ENERYA ANTALYA GAZ DAĞITIM ANONİM 22,99 22,99 52,62 ENERYA AYDIN GAZ DAĞITIM ANONİM 18,22 18,22 7,29 ENERYA DENİZLİ GAZ DAĞITIM ANONİM 145,80 145,80 60,09 ENERYA EREĞLİ GAZ DAĞITIM ANONİM 24,60 24,60 12,86 ENERYA ERZİNCAN GAZ DAĞITIM ANONİM 36,74 36,74 18,99 ENERYA KAPADOKYA GAZ DAĞITIM ANONİM 73,36 73,36 31,10 ENERYA KARAMAN GAZ DAĞITIM ANONİM 30,45 30,45 25,87 ENERYA KONYA GAZ DAĞITIM A.Ş. 289,83 289,83 119,98 53

67 Company ESGAZ ESKİŞEHİR ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İNEGÖL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZGAZ İZMİT GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZMİR DOĞALGAZ DAĞITIM TİCARET VE TAAHHÜT ANONİM KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED KAYSERİGAZ KAYSERİ DOĞALGAZ DAĞITIM PAZARLAMA VE TİCARET ANONİM KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET ANONİM KIZILCAHAMAM DOĞALGAZ DAĞITIM ANONİM PALEN ENERJİ DOĞAL GAZ DAĞITIM END. VE TİCARET ANONİM PALGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM POLGAZ POLATLI DOĞAL GAZ DAĞITIM ANONİM SAMGAZ DOĞAL GAZ DAĞITIM ANONİM SELÇUK DOĞAL GAZ DAĞITIM ANONİM SERHAT DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM Consumption of Subscribers* Consumption of Household Subscribers * Consumption of Eligible Consumers * 241,05 241,05 89,49 194,31 194,31 70, , , ,35 59,14 59,14 14,20 258,92 258,92 113,25 364,26 364,26 354,94 108,09 108,09 136,88 28,37 28,37 25,76 300,24 300,24 123,55 87,13 87,13 51,28 3,34 2,30 2,22 96,55 96,55 79,56 138,25 138,25 141,05 22,45 22,45 2,54 136,66 136,66 63,41 13,45 13,45 6,37 0,49 0,47 0,00 46,51 46,51 14,00 42,24 42,24 54,21 54

68 Company TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM UDAŞ UŞAK DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM Consumption of Subscribers* Consumption of Household Subscribers * Consumption of Eligible Consumers * 87,47 87,47 50,77 219,72 219,72 558,65 46,49 46,49 22,66 Total , , ,72 * The Board Resolutions, 5920 dated and 17/12/2015 numbered and 18/12/2014 dated and 5362 numbered, regarding the limit of being a eligible consumer for the Natural Gas Market to be implemented throughout 2016", it was decided to continue to apply the same limit. In Board Decision 5362; it is stated that all consumers are regarded as eligible consumer except for the household consumers (residential consumers) and m3 is the limit of the eligible consumers for these households. According to the Board Decision mentioned above, for the distribution companies which licensed in consequence of tender process, the consumption limit of eligible consumers shall be applied as stated in their tender specifications for the first 5 years period beginning from their licensing date. Thus, for only this 5 years period, the consumers other than households may be regarded as subscribers, that is why the consumption of subscribers and the consumption of household subscribers are depicted separately on the table. ** According to the Board Decision mentioned above, in the distribution regions of the distribution companies that have completed their first 5 years, household consumers (residential consumers) who consume more than the limit of m3 could achieve to be eligible consumer. Thus, the number of eligible consumers also includes some household consumer. 55

69 Considering monthly consumptions of natural gas subscribers in 2016, it increased especially during winter months and in January it reached to the peak (2.403, 52 Million Sm 3 ). In 2016, minimum consumption was realized in July (173,42 Million Sm 3 ). This situation is shown at Graph , , , ,00 500,00 0,00 Graph 7.2: Monthly Consumptions of Natural Gas Subscribers in 2016 (Million Sm 3 ) Combi and Oven 82,81% Central Heating 0,59% Others 1,78% WaterHeater, Stove and Oven 2,91% Oven 3,25% Water Heater and Oven 8,65% Graph 7.3: of Number of 2016 Household Subscribers by Natural Gas Usage Type (%) 56

70 7.4 Interruption of Natural Gas Service (Temporary Gas Cuts) temporary gas cuts were by distribution companies were detected in Not paying invoice on time was the first reason of natural gas cuts with 83,15 % share, the second important reason was the illegal and irregular usage of natural gas with 11,81 % share and another reason with 3,46 % share was the application of customers. Reasons for temporary gas cuts in 2016 are shown at Graph 7.4. Illegal and Irregular Usage of Natural Gas 11,81% Application of Consumers 3,46% Others 1,58% Not Paying Invoice Amount on Time 83,15% Graph 7.4: Reasons for Temporary Gas Cuts in 2016 (%) 7.5 Applications and Complaints Applications and complaints forwarded to distribution companies by consumers were mainly about meters (measurement precision, breakdown, wrong meter readings, etc.), natural gas pressure degree, gas cuts, complaints about certificate owners and some other reasons. In 2016, there were applications and complaints forwarded to distribution companies. Of this amount, 65 % was about meters, 15,42 % was about billing, 2,84 % was about customer service and 12,64 % was about other subjects (connection demand etc.). Proportional distribution of reasons of applications and complaints made by consumers to distribution companies is shown at Graph

71 Table 7.5: Proportional of Application and Complaint Reasons Made by Consumers to Companies Number of Share Complaint Reasons Complaints (%) Complaints About Meters ,65 Complaints About Billing ,42 Other Complaints ,64 Complaints About Customer Service ,84 Complaints Related with Prices/Tariffs ,68 Complaints Related with Subscription ,22 Complaints About Certificate Owners ,55 Total Complaints About Customer Service 2,84% Complaints Related with Prices/Tariffs 1,68% Complaints Related with Subscription 1,22% Complaints About Certificate Owners 0,55% Other Complaints 12,64% Complaints About Billing 15,42% Complaints About Meters 65,65% Graph 7.5: Proportional of Application and Complaint Reasons Made by Consumers to Companies (%) 58

72 7.6 Invoice Objections Invoice objections forwarded to distribution companies, number of objections, number of customers whose objections were accepted, number of customers whose objections were refused are analyzed at Graph 7.6. Hereunder, in 2016, there were invoice objections and 86,7 % of these objections were accepted by distribution companies for re-evaluation. Number of Customers Whose Objections were Accepted 13,30% Graph 7.6: Status of Invoice Objections in 2016 (%) Number of Customers Whose Objections were Refused 86,70% 7.7 Emergency Actions emergency action notifications forwarded to distribution companies in cuts were made because of emergency situations. companies have staff and 595 vehicles for responding emergency situations. 59

73 7.8 Employment companies employment data in 2016 is given at Table 7.7. below. Since the number of workers belonging to contractors and subcontractors is constantly changing during the year, the highest value in 2016 was taken as the basis for this report. The number of staff is the registered staff by the end of December. Table 7.6: Companies Employment Data by the End of 2016 Company Number of Direct Employee Number of Indirect Employee AGDAŞ ADAPAZARI GAZ DAĞITIM ANONİM AKMERCAN BATIKAR DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN DELTA DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN GEPA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 27 7 AKMERCAN MARDİN DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN MUĞLA DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKMERCAN SİNOP DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 6 29 AKMERCANGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM AKSA AFYON DOĞAL GAZ DAĞITIM ANONİM AKSA BALIKESİR DOĞAL GAZ DAĞITIM ANONİM AKSA BANDIRMA DOĞAL GAZ DAĞITIM ANONİM AKSA BİLECİK BOLU DOĞAL GAZ DAĞITIM ANONİM AKSA ÇANAKKALE DOĞAL GAZ DAĞITIM ANONİM AKSA DÜZCE EREĞLİ DOĞAL GAZ DAĞITIM ANONİM AKSA ELAZIĞ DOĞALGAZ DAĞITIM ANONİM AKSA GAZ DAĞITIM ANONİM AKSA GEMLİK DOĞAL GAZ DAĞITIM ANONİM AKSA GÜMÜŞHANE BAYBURT DOĞALGAZ DAĞITIM ANONİM AKSA KARADENİZ DOĞAL GAZ DAĞITIM ANONİM AKSA MALATYA DOĞAL GAZ DAĞITIM ANONİM AKSA MANİSA DOĞAL GAZ DAĞITIM ANONİM AKSA MUSTAFAKEMALPAŞA SUSURLUK KARACABEY DOĞAL GAZ DAĞITIM ANONİM

74 Company Number of Direct Employee Number of Indirect Employee AKSA ORDU GİRESUN DOĞAL GAZ DAĞITIM ANONİM AKSA SİVAS DOĞAL GAZ DAĞITIM ANONİM AKSA ŞANLIURFA DOĞAL GAZ DAĞITIM ANONİM AKSA TOKAT AMASYA DOĞAL GAZ DAĞITIM ANONİM AKSA VAN DOĞAL GAZ DAĞITIM ANONİM ARMADAŞ ARSAN MARAŞ DOĞAL GAZ DAĞITIM ANONİM ARMAGAZ ARSAN MARMARA DOĞALGAZ DAĞITIM ANONİM BAHÇEŞEHİR GAZ DAĞITIM ANONİM BAŞKENT DOĞALGAZ DAĞITIM GAYRİMENKUL YATIRIM ORTAKLIĞI ANONİM BURSA ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM ÇİNİGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM ÇORDAŞ ÇORLU DOĞALGAZ DAĞITIM ANONİM ÇORUM DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM DİYARBAKIR DOĞAL GAZ DAĞITIM ANONİM DOĞUGAZ BİTLİS BİNGÖL MUŞ DOĞALGAZ DAĞITIM ANONİM ENERYA AKSARAY GAZ DAĞITIM A.Ş ENERYA ANTALYA GAZ DAĞITIM A.Ş ENERYA AYDIN GAZ DAĞITIM ANONİM ENERYA DENİZLİ GAZ DAĞITIM ANONİM ENERYA EREĞLİ GAZ DAĞITIM ANONİM ENERYA ERZİNCAN GAZ DAĞITIM ANONİM ENERYA KAPADOKYA GAZ DAĞITIM A.Ş ENERYA KARAMAN GAZ DAĞITIM ANONİM ENERYA KONYA GAZ DAĞITIM A.Ş ESGAZ ESKİŞEHİR ŞEHİRİÇİ DOĞAL GAZ DAĞITIM TİCARET VE TAAH. ANONİM GAZDAŞ GAZİANTEP DOĞAL GAZ DAĞITIM ANONİM İGDAŞ İSTANBUL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İNEGÖL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM

75 Company Number of Direct Employee Number of Indirect Employee İZGAZ İZMİT GAZ DAĞITIM SANAYİ VE TİCARET ANONİM İZMİR DOĞALGAZ DAĞITIM TİCARET VE TAAHHÜT ANONİM KARGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM KARGAZ KARS ARDAHAN DOĞAL GAZ DAĞITIM PAZ. TAAH. SANAYİ VE TİCARET LİMİTED KAYSERİGAZ KAYSERİ DOĞALGAZ DAĞITIM PAZARLAMA VE TİCARET ANONİM KIRGAZ KIRIKKALE-KIRŞEHİR DOĞAL GAZ DAĞITIM PAZ. VE TİCARET ANONİM KIZILCAHAMAM DOĞALGAZ DAĞITIM ANONİM 16 0 PALEN ENERJİ DOĞAL GAZ DAĞITIM END. VE TİCARET ANONİM PALGAZ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM POLGAZ POLATLI DOĞAL GAZ DAĞITIM ANONİM 50 1 SAMGAZ DOĞAL GAZ DAĞITIM ANONİM SELÇUK DOĞAL GAZ DAĞITIM ANONİM SERHAT DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM 3 40 SİİRT BATMAN DOĞAL GAZ DAĞITIM ANONİM SÜRMELİ DOĞAL GAZ DAĞITIM SANAYİ VE TİCARET ANONİM 46 6 TOROSGAZ ISPARTA BURDUR DOĞALGAZ DAĞITIM ANONİM TRAKYA BÖLGESİ DOĞAL GAZ DAĞITIM ANONİM UDAŞ UŞAK DOĞALGAZ DAĞITIM SANAYİ VE TİCARET ANONİM Total

76 8. CONSUMPTION With the Board decision dated 25/02/2016 and numbered 6125, the national natural gas consumption amount estimated to be Sm 3 in 2016 and was realized as Sm 3, with a deficit of 6,39 % and a loss of 4.10 million Sm 3. National natural gas consumption quantities according to years are given at Table 8.1. Table 8.1: Total Natural Gas Consumptions by Years (Million Sm 3 ) Year Consumptions (million sm 3 ) Change from the Previous Year (%) , , , , , , , , , , al Consumption 2016 national natural gas sectoral consumption amounts are given at Table 8.2. Table 8.2: Comparison of al Natural Gas Consumption of 2015 and 2016(Million Sm 3 ) Share of 2016 (%) Change (%) Conversion , ,31 36,06-12, Power plants , ,40 27,09 10, Auto producer power plants 6.867, ,31 7,52-49, Combined heating and power (CHP) plants 19,23 33,21 0,07 72, Auto producer heating and power plants 64,89 361,36 0,78 456, Heating plants 0,00 25,62 0, Auto producer heating plants 644,79 249,35 0,54-61, Other 0,02 0,07 0,00 227,59 2. Energy 302,34 346,30 0,75 14, Petroleum refineries 123,83 192,08 0,41 55, Blast furnaces 0,07 0,03 0,00-53, Consumed as fuel in Power, CHP and Heating Plants 5,29 5,28 0,01-0, Other 173,14 148,90 0,32-14,00 63

77 Share of 2016 (%) Change (%) Transportation 423,11 397,37 0,86-6, Vehicular fuel 85,90 81,12 0,17-5, Pipeline transportation 336,88 315,17 0,68-6, Other 0,33 1,09 0,00 229,64 4. Industry , ,99 30,38 0, Woodworking 203,46 200,00 0,43-1, Alcohol and alcoholic products 21,36 19,92 0,04-6, Nonmetallic minerals (glass, ceramics, cement, etc.) 1.542, ,80 3,70 11, Iron and Steel 1.388, ,43 2,77-7, Nonferrous metal mining and metalworking (chrome, copper, etc.) 535,48 585,19 1,26 9, Food and beverages 938, ,50 2,33 15, Fertilizers 879,45 588,49 1,27-33, Construction (building products, road construction, etc.) 360,01 547,71 1,18 52, Paper, cellulose and printing 222,26 274,43 0,59 23, Chemistry (including petro chemistry) 2.563, ,07 5,25-5, Mining and quarrying 130,39 109,78 0,24-15, Machine industry 68,78 63,38 0,14-7, Textiles, leather and clothing industry 856,51 786,93 1,70-8, Tobacco and tobacco products 21,75 17,94 0,04-17, Transportation vehicles industry (automotive, airplane industry, etc.) 150,59 163,01 0,35 8, Organized Industrial Sites 3.143, ,84 7,03 3, Other 939,53 958,58 2,07 2,03 5. Service 3.160, ,73 6,68-1, Businesses 1.492, ,22 3,04-5, State offices 1.396, ,04 3,09 2, Other 271,41 254,47 0,55-6,24 6. Other s , ,26 25,27 5, Household , ,38 25,05 5, Agriculture-Forestry 20,74 17,86 0,04-13, Stockbreeding (fisheries, poultry raising and cattle dealing 59,67 50,20 0,11-15, Other 52,82 34,81 0,08-34,10 7. Losses 3,39 4,10 0,01 20,94 Total , , ,34 64

78 When sectoral consumption in 2016 is calculated as percentage; 25,05 % was residential consumption, 36,06 % was electricity consumption, and 30,38 % was industrial consumption. This situation that includes other main sectors is seen at Graph 8.1. Households 25,05% Government Offices and Business 6,13% Others 2,38% Electricity Generation 36,06% Industry 30,38% Graph 8.1: Share of al Consumption in 2016 (%) When the sectoral consumption quantities are examined according to years; the amount of natural gas used for electricity generation showed a significant decline between the years The amount of natural gas used for electricity generation decreased by 12 % compared to the previous year in Between 2013 and 2016, the amount of natural gas used in the industrial sector increased, contrary to the gas used for electricity production. Industrial consumption increased by 0,93 % in 2016, whereas it was 5,64 % in household consumption. Comparison of sectoral consumption by years is shown at Graph

79 25.000, , , , ,00 0,00 Electricity Generation Households Industry Government Offices and Business Others Graph 8.2: Comparison of al Consumption by Years Effects of monthly sectoral consumption distribution of natural gas on total consumption in 2016 are shown at Graph 8.3. Minimum monthly natural gas consumption was occurred in September as 2.710,61 million Sm 3. Maximum monthly consumption was occurred in January as 5.779,12 million Sm 3. In 2016, monthly average consumption was 3.866,26 million Sm 3 and natural gas consumptions in January, February, March, November and December were more than the average consumption. 66

80 2.500, , , ,00 500,00 0, , , , , , ,00 0,00 Electricity Generation Industry Household Total Graph 8.3: Monthly Changes of 2016 al Consumption (Million Sm 3 ) Share of natural gas used for electricity generation in total monthly consumption was more than 50 % in July and August. Share of natural gas used at households in total monthly consumption was more than 30 % in January, February, March and December. The highest share of households in monthly consumption was in January as 42,78 %. Share of natural gas used at industrial sector in total monthly consumption was between 22,07 % and 39,93 % in The month in which the share of the industrial sector in monthly consumption is highest was May. Monthly changes of sectoral consumption in 2016 are shown at Graph 8.4. With respect to monthly consumption, the highest variability was seen at households. Consumption of households had a sharp decrease during May-September, and had a sharp increase during October-December. Natural gas consumption used in industrial sector did not change much monthly but had a slight increase during September-December. It was observed that natural gas consumption used in electricity generation started to increase during summer. 67