Türkiye is nearing completion of a legal infrastructure for a natural gas hub that is planned to be set up in the country, its energy minister said Monday.
Setting up a hub in Türkiye was first proposed by Russia’s President Vladimir Putin in October after explosions damaged Russia’s Nord Stream gas pipelines under the Baltic Sea in September.
The implementation of the project aiming at redirecting supplies and exporting them to the European market was delayed after devastating earthquakes jolted southeastern Türkiye last month, causing widespread destruction across the region.
The Feb. 6 quakes and strong aftershocks killed more than 46,000 people, destroyed or damaged over 230,000 buildings, and left hundreds of thousands of people homeless – making it the worst disaster in Türkiye’s modern history.
Energy and Natural Resources Minister Fatih Dönmez said they were focused on post-disaster relief efforts but said works regarding the trade center were ongoing.
"One or two laws need to be changed. This will appear on the parliamentary agenda in the coming days. After that, the legal infrastructure will be largely completed," Dönmez told reporters after the Cabinet meeting in Ankara.
"Studies are ongoing. Our goal is to make it fully operational within a year."
Putin suggested developing transshipment and exchange terminals for Russian gas, potentially making Türkiye a significant center for sales of Russian gas to third countries.
Erdoğan backed the idea and the two countries instructed authorities to work on a roadmap.
Türkiye currently imports all its gas needs and has extensive liquefied natural gas (LNG) import infrastructure. Ankara believes it can leverage its existing and new trade relations to become a gas hub.
Meanwhile, Dönmez also said the start of the natural gas production from the Black Sea might be delayed by up to a month after staff had to leave to care for relatives affected by the earthquakes.
"There may be a slight delay," he said. "It seems it will likely be in April."
Türkiye was earlier set to start pumping the gas into the national grid by the end of March. It has gradually discovered about 710 billion cubic meters (bcm) of gas since August 2020, which is estimated to have a market value of $1 trillion (TL 18.9 trillion).
Dönmez said some of the staff have started to return and that he would visit the region soon and conduct necessary evaluations.
About 10 million cubic meters (mcm) of Black Sea gas per day is expected to be transferred in the initial phase, while the infrastructure has been set up to enable this figure to peak at 40 mcm through 2026.
Türkiye’s annual gas consumption rose from 48 bcm in 2020 to a record 60 bcm in 2021. President Recep Tayyip Erdoğan said it was expected to stand at around 53.5 bcm in 2022.
Earlier estimates had put the figure at up to 63 bcm, but the power generated from renewable resources this year drove the gas consumption downward.