BOTAŞ TURKEY Network Principles, Tariffs, International Integration and Re- Export Opportunities H. Hakan ÜNAL (M.Sc.) Dr. iur. Cafer EMİNOĞLU BOTAŞ CIS Oil & Gas Summit 2012-16 May, Paris
Turkish Natural Gas Market Overview / History Begin of Natural Gas consume Natural Gas Market Law (End of BOTAŞ s monopoly rights) BOTAŞ Network Code entres into force 1 July First Shipper in System (AKSA Co.) First Network Code Revision III. Network Code Revision 2011-12-13 3 year- tariff Approved by EMRA VI. Network Code Revision 1974 1987 1995 2001 2004 2004 2007 2007 2007 2008 2009 2009 2009 2010 2010 2011 2011 2012 BOTAŞ was established Electronic Bulletin Board Privatisation starts of BOTAŞ s distribution companies II. Network Code Revision IV. Network Code Revision V. Network Code Revision 20 Shippers in System 2
Virtual Trade 7,000,000,000 Trade on National Balancing Point National Balancing Point Private sector Total Exit 6,000,000,000 5,000,000,000 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 0 2007 2008 2009 2010 2011 2012 prospect 3
Virtual Trade of Private Sector 160% 140% 120% 100% 80% 60% 40% 20% 0% National Balancing Point Trade Rates 0% 0% 24% 39% 55% 134% 2007 2008 2009 2010 2011 2012 prospects 4
BOTAŞ TURKEY Network Principles, Tariffs, International Integration and Re- Export Opportunities H. Hakan ÜNAL (M.Sc.) Dr. iur. Cafer EMİNOĞLU CIS Oil & Gas Summit 2012, 14-16 May, Paris 5
The Length of BOTAŞ Natural Gas Transmission Network 6
7 Provinces Recieving Natural Gas in 2002 KIRKLARELİ İSTANBUL KOCAELİ YALOVA BURSA BİLECİK ESKİŞEHİR SAKARYA BOLU KARABÜK ANKARA KONYA KIRIKKALE AKSARAY KIRŞEHİR NEVŞEHİR NİĞDE ADANA HATAY KİLİS GAZİANTEP D Ü ZC E BARTIN KASTAMONU SİNOP ÇANKIRI ÇORUM SAMSUN AMASYA ZONGULDAK TOKAT SİVAS YOZGAT OSMANİYE MALATYA ADIYAMAN DİYARBAKIR ŞANLIURFA İÇEL KAHRAMANMARAŞ ELAZIĞ MUŞ TUNCELİ BİNGÖL BATMAN SİİRT ŞIRNAK HAKKARİ VAN ERZİNCAN ERZURUM KARS AĞRI IĞDIR ARDAHAN ARTVİN RİZE BAYBURT TRABZON GÜMÜŞHANE GİRESUN ORDU KAYSERİ BİTLİS MARDİN KARAMAN ANTALYA BURDUR ISPARTA AFYON UŞAK DENİZLİ MUĞLA AYDIN EDİRNE TEKİRDAĞ ÇANAKKALE BALIKESİR MANİSA İZMİR KÜTAHYA 9 Provinces
8 KIRKLARELİ 2006 İSTANBUL 1989 KOCAELİ 1989 YALOVA 1989 BURSA 1996 BİLECİK ESKİŞEHİR 1995 SAKARYA 2002 BOLU 2008 KARABÜK 2008 ANKARA 1988 KONYA KIRIKKALE AKSARAY KIRŞEHİR NEVŞEHİR 2008 NİĞDE ADANA HATAY 2011 KİLİS 2011 GAZİANTEP DÜZCE 1996 BARTIN 2009 KASTAMONU 2007 SİNOP 2012 ÇANKIRI 2007 ÇORUM SAMSUN AMASYA 2008 ZONGULDAK 2009 TOKAT 2008 SİVAS YOZGAT 2004 OSMANİYE MALATYA ADIYAMAN 2006 DİYARBAKIR 2007 ŞANLIURFA 2007 İÇEL KAHRAMANMARAŞ ELAZIĞ 2007 MUŞ TUNCELİ 2012 BİNGÖL 2012 BATMAN 2011 SİİRT 2011 ŞIRNAK HAKKARİ VAN 2007 ERZİNCAN 2008 ERZURUM KARS 2006 AĞRI 2006 IĞDIR 2009 ARDAHAN 2006 ARTVİN 2012 RİZE 2008 BAYBURT 2006 TRABZON 2008 GÜMÜŞHANE 2008 GİRESUN 2010 ORDU 2007 KAYSERİ BİTLİS MARDİN KARAMAN ANTALYA BURDUR ISPARTA AFYON UŞAK DENİZLİ MUĞLA 2011 AYDIN 2007 EDİRNE 2007 TEKİRDAĞ 2007 ÇANAKKALE 1996 BALIKESİR MANİSA İZMİR KÜTAHYA Provinces Recieving Natural Gas in 2011
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TURKEY: NATURAL GAS SUPPLY SOURCES BY YEARS SM3x1000 45.000.000 40.000.000 35.000.000 30.000.000 25.000.000 20.000.000 15.000.000 10.000.000 5.000.000 TEMİ (PRODUC TION) TP AO K. (S TOR AGE ) TP AO A. (P R OD UC TION) İR A N LNG ALİAĞA LNG MARMARA AZERBAIJAN RUSSSIA BLUE STREAM RUSSIA - WEST 0 2002 2004 2006 2007 2008 2009 2010 2011 10
SEKTORAL CONSUMPTION - BOTAŞ 2007-2011 (Milyon sm 3 ) 45,000 40,000 8,030 35,000 8,042 30,000 7,467 7,845 6,325 5,754 9,259 25,000 20,000 7,701 7,920 7,611 6,625 9,937 15,000 10,000 19,326 19,873 17,651 18,550 20,715 24,720 5,000 0 2007 2008 2009 2010 2011 2012 POWER PLANTS RESIDENCE INDUSTRY 11
SHARES OF SECTORAL CONSUMPTION (2011) 25.68% 53.54% 20.78% POWER PLANTS RESIDENCE INDUSTRY 12
EU Integration Process Natural Gas Market Law: Enacted in 2001 The aim: to liberalize the market and encourage privatization and competition Regulation of Natural Gas Market by the Energy Market Regulatory Authority licenses from EMRA for gas transmission, export, import, wholesale, distribution and storage BOTAŞ -> of long-term gas supply agreements to the private sector 13
Liberalization steps / EU Integration Account Separation -> Realized Third Party Access (2007) -> Realized Legal Unbundling -> Not realized 14
BOTAŞ Transmission Tariffs Revenue cap method Tariff applied in non-discriminatory manner Capacity charge and service charge Possibility to determine transit transmission tariffs Tariffs pertaining to dispatch, system balancing, interruption balancing and service interruption charges 15
Re-export Possibilities q Re-export of imported Gas / Export of in Turkey produced Gas q Three important conditions: q Gas Sale Agreements q Export licence q Technical capacity of Transmission company 16
Turkey as a Natural Transit Country WORLD S 2 ND LARGEST NATURAL GAS MARKET Turkey as a Natural Transit Country NATURAL TRANSIT ROUTE WORLD S LARGEST OIL AND GAS RESOURCES 17 17
International Projects Transcaspian Turkmenistan-Turkey-Europe Natural Gas Pipeline Project (signed in 1998) > 30 bcm/a year -> Not realized yet. Reason: political problems in Caspian region Egypt-Turkey Natural Gas Pipeline Project (signed in 2004) -> approximately 10 bcm/ a year -> not realized yet. Reason: Stabilization problems in region. Iraq-Turkey Gas Pipeline Project (sighned in 1996) -> at least 10 bcm / a year not realized yet -> security and political problems in the region Turkey Azerbaijan Transit/Purchase Agreement via Trans Anatolian Pipeline or BOTAŞ Transmission System > ( Signed in October 2011) 16 bcm/ a year. (more capacity possible)-> Beginning: 2018 -> Opening of the South corridor 18
Solution: stabilization, normalization and peace in Central Asia, Caspian Region and Middle East. 19
THANK YOU FOR YOUR ATTENTION H. Hakan ÜNAL (M.Sc.) Dr. iur. Cafer EMİNOĞLU 20