BOTAŞ TURKEY Network Principles, International Integration and Opportunities H. Hakan ÜNAL Cafer EMİNOĞLU BOTAŞ Gas Transmission Management 1
Content Introducing BOTAŞ Overview - History BOTAŞ Network System Internal Developments Principles of BOTAS Transmission Network Operation Regulations Overview Turkish Natural Gas Market and the Liberalization process Tariffs The Integration of Turkish Natural Gas Transmission System to the European and Mediterranean Network System Physical Connections Exit /Entry Points International Projects EU Integration Process Re-export Possibilities in Natural Gas Sector in Turkey Real Opportunities 2
BOTAŞ Overview / History Established in1974. Purpose: Transportation of Iraqi crude oil 1987 : Expansion of activity-field: transportation and trade of Natural gas ->trade company 2001: BOTAŞ s monopoly rights on natural gas import, distribution, sales and pricing were abolished by the Natural Gas Market Law BOTAŞ is still major market player 3
BOTAŞ TRANSMISSION NETWORK OPERATION PRINCIPLES BOTAŞ Network Code is in force since 1st September, 2004. Five revisions Account Separation for trade, transmission and storage July 2007: First shipper After Transfer Entry Exit Point regulation -> rapid increase of the Shipper Number Today: 20 Shippers 5 Importers Transmited volume: Botaş - > 85% 20 Shippers - > 15 % (expected to be 25-30 % in a short time) 4
Transported Amount - Private Sektor /NBP Trade 7.000.000.000 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 1 July-31 December 2007 2008 2009 2010 1 January- 31 August 2011 National Balancing Point Private Sector total exit Amount 5
BOTAŞ : STRATEGIC GOALS Caspian and Middle East -> Turkey-> Europe Effective role in the oil and natural gas market Contributing to the creation of liberalized market conditions Supplying energy at world level cost Building strategic co-operations Security environment society efficiency 6
The length of BOTAŞ Natural Gas Transmission Network 7
Provinces Recieving Natural Gas in 2002 End of 2002:9 Provinces EDĠRNE ÇANAKKALE TEKĠRDAĞ ĠZMĠR KIRKLARELĠ BALIKESĠR AYDIN MANĠSA MUĞLA ĠSTANBUL KOCAELĠ YALOVA BURSA KÜTAHYA UġAK DENĠZLĠ BURDUR SAKARYA BĠLECĠK ZONGULDAK KARABÜK DÜZCE ESKĠġEHĠR AFYON ISPARTA BOLU ANTALYA BARTIN ANKARA KONYA KASTAMONU ÇANKIRI KIRIKKALE KIRġEHĠR AKSARAY KARAMAN ĠÇEL ÇORUM NEVġEHĠR NĠĞDE SĠNOP YOZGAT AMASYA SAMSUN KAYSERĠ TOKAT ADANA OSMANĠYE HATAY SĠVAS ORDU MALATYA KAHRAMANMARAġ ADIYAMAN GAZĠANTEP KĠLĠS GĠRESUN TRABZON GÜMÜġHANE ERZĠNCAN TUNCELĠ ELAZIĞ ġanliurfa RĠZE BAYBURT BĠNGÖL DĠYARBAKIR MARDĠN ARTVĠN ERZURUM MUġ BATMAN ARDAHAN SĠĠRT KARS BĠTLĠS ġirnak AĞRI VAN IĞDIR HAKKARĠ 2002 YILI VE ÖNCESĠ GAZ ARZI SAĞLANAN ĠLLER (9 ĠL) -2004-2005-2006 YILLARINDA GAZ ARZI SAĞL. ĠLLER (34 ĠL) 2007 YILINDA GAZ ARZI SAĞLANACAK ĠLLER (16 ĠL) 2008 YILINDA GAZ ARZI SAĞLANACAK ĠLLER (8 ĠL) 8
9 KIRKLARELĠ 2006 ĠSTANBUL 1989 KOCAELĠ 1989 YALOVA 1989 BURSA 1996 BĠLECĠK ESKĠġEHĠR 1995 SAKARYA 2002 BOLU 2008 KARABÜK 2008 ANKARA 1988 KONYA KIRIKKALE AKSARAY KIRġEHĠR NEVġEHĠR 2008 NĠĞDE ADANA 2005 HATAY 2011 KĠLĠS 2011 GAZĠANTEP 2005 DÜZCE 1996 BARTIN 2009 KASTAMONU 2007 SĠNOP 2012 ÇANKIRI 2007 ÇORUM SAMSUN AMASYA 2008 ZONGULDAK 2009 TOKAT 2008 SĠVAS YOZGAT 2004 OSMANĠYE 2005 MALATYA 2005 ADIYAMAN 2006 DĠYARBAKIR 2007 ġanliurfa 2007 ĠÇEL 2005 KAHRAMANMARAġ 2005 ELAZIĞ 2007 MUġ 2012 TUNCELĠ 2012 BĠNGÖL 2012 BATMAN 2011 SĠĠRT 2011 ġirnak 2012 HAKKARĠ 2012 VAN 2007 ERZĠNCAN 2008 ERZURUM KARS 2006 AĞRI 2006 IĞDIR 2009 ARDAHAN 2006 ARTVĠN 2012 RĠZE 2008 BAYBURT 2006 TRABZON 2008 GÜMÜġHANE 2008 GĠRESUN 2010 ORDU 2007 KAYSERĠ BĠTLĠS 2012 MARDĠN 2012 KARAMAN ANTALYA 2005 BURDUR 2005 ISPARTA 2005 AFYON 2005 UġAK DENĠZLĠ 2005 MUĞLA 2011 AYDIN 2007 EDĠRNE 2007 TEKĠRDAĞ 2007 ÇANAKKALE 1996 BALIKESĠR MANĠSA ĠZMĠR KÜTAHYA Provinces Recieving Natural Gas in 2011 Mayıs 2011 itibarıyla
10
BOTAŞ - (Milyon Sm NATURAL GAS PROCUREMENT BY YEARS 3 ) 35.873 38.120 30.307 33.068 31.917 26.736 20.822 21.798 17.095 14.531 15.866 16.537 12.325 7.904 6.742 5.286 4.028 4.3854.891 3.301 3.049 513 1.159 10.042 9.707 11
2011 NATURAL GAS SUPPLY SOURCES - TURKEY İRAN 18% TPAO A. 1% TEMİ 0% TPAO K. 4% Russia- West 27% LNG ALİAĞA 3% LNG MARMARA 10% Azerbaijan 9% Russia Blue S. 28% 12
TPAO STORAGE 3% 2011 NATURAL GAS CONSUMPTION - TURKEY INTR. CONSUMPT. 0% GREECE 2% ANOTHER ELECT. PRODUCT. C. 1% HOUSING 23% E.Ü.A.Ş 9% INDUSTRY 44% B.O 14% B.O.Ts 4% 13
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 14
Integration to the European and Mediterranean Network System Physical Connections Exit /Entry Points Hakan beyin Altan Beye verdiği harita buraya. 15
Turkey as a Natural Transit Country WORLD S 2 ND LARGEST NATURAL GAS MARKET NATURAL TRANSIT ROUTE WORLD S LARGEST OIL AND GAS RESOURCES 16
International Projects Turkey- Greece-Italy Natural Gas Pipeline Project Transcaspian Turkmenistan Turkey - Europe Natural Gas Egypt - Turkey Natural Gas Pipeline Project Iraq - Turkey Gas Pipeline Project (Itgep Project) Nabucco Natural Gas Pipeline Project Transit Of Shah Deniz II Gas 17
ITGI 18
TRANSCASPIAN TURKMENISTAN-TURKEY- EUROPE NATURAL GAS PIPELINE PROJECT 19
EGYPT-TURKEY NATURAL GAS PIPELINE PROJECT 20
IRAK TURKEY PIPELINE PROJECT : 11-18 bcm/year. 11-16 bcm/yıl ihracat 30-35 3.9 2-7 6.5 60-70 H 50 21
22
Shah Deniz II Transit Agreement 23
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 24
Liberalization steps / EU Integration Account Separation -> Realised Third Party Access (2007) -> Realised Legal Unbundling -> Not realized 25
Comparison: REGULATION (EC) No 713/2009 - BOTAŞ Network Code Absence of Transit Regulation for Natural Gas Tariff requirments services on a non-discriminatory basis - firm and interruptible third-party access services long and short-term services capacity-allocation mechanisms daily capacity booking and capacity transfer mechanisms Balancing Rules and Imbalance Charges 26
Re-export Possibilities in Natural Gas Market in Turkey Re-export of imported Gas / Export of in Turkey produced Gas Three important conditions: Gas Sale Agreements Export licence Technical capacity of Transmission company 27
THANK YOU FOR YOUR ATTENTION H. Hakan ÜNAL Cafer EMİNOĞLU BOTAŞ Gas Transmission Management 28