Türkiye has filled all of its natural gas storage units, according to the country’s energy ministry, as the import-dependent country moved to secure energy supplies ahead of the winter.
Officials have said Türkiye has been affected by the global energy crisis, yet in contrast to Europe, it is not expected to face any disruptions this winter as long as gas suppliers follow through on their pledges.
Russia’s invasion of Ukraine and the resulting energy standoff have left Europe scrambling to find alternative gas supplies. Fears in Europe rose over a potentially bleak winter after Russia said it would keep its main gas pipeline to Germany shut.
Energy costs have rocketed this year, driven by record gas prices as Moscow curbed supply, blaming cuts on technical issues and Western sanctions over its invasion of Ukraine.
European governments have accused Moscow of using energy as blackmail, in retaliation for Western support for Ukraine. Russian gas pipeline deliveries via three main routes to Europe have fallen by almost 90% in the last 12 months, Refinitiv data shows.
Türkiye’s underground natural gas storage has reached its full capacity, the Energy and Natural Resources Ministry said in a note on Sunday.
That means 4.6 billion cubic meters (bcm) of natural gas is stored in Istanbul’s Silivri unit and 1.2 billion bcm is in the Tüz Gölü (Lake Tuz) unit in the central Aksaray province.
Recent upgrades raised the storage capacity at the Silivri unit from 3.2 bcm. The two facilities hold enough gas to cover needs for more than a month.
Based on gas consumption last year, Türkiye’s storage units currently hold 10% of annual consumption.
In July, the government advised filling the units to maximum capacity, given rising energy prices have expanded Türkiye’s current account deficit. The country imports almost all of its energy needs.
In an effort to diversify its energy sources, officials have said Türkiye has acquired sufficient supplies to cope with demand. The country imports natural gas from Iran, Azerbaijan and Russia through pipelines, and buys liquefied natural gas (LNG) from Qatar, Nigeria, Norway, Algeria and the United States.
Türkiye currently hosts four LNG terminals. A fifth terminal is under construction in Saros in the Edirne province, which should take 12 months to complete. An FSRU is also an option that is in the works for use as a backup.
The country is also preparing to use its own natural gas it discovered in the Black Sea as soon as the first quarter of 2023.
Pipes have been laid for an underwater pipeline network that will transport onshore the 540 bcm of gas reserve that was gradually discovered in the Black Sea since August 2020. It marks Türkiye’s largest-ever natural gas discovery.
To help households cope with rising costs, Türkiye in 2021 introduced fuel, electricity and gas subsidies worth TL 200 billion, with more than TL 300 billion seen this year, yet energy costs have risen much faster than anticipated.
The government has been subsidizing around 80% of a natural gas bill through various supports.
Türkiye increasingly relies on Russia for trade and tourism. Russian gas covers almost half of Turkish energy needs, and Russia’s atomic agency is building Türkiye’s first nuclear power plant.
Türkiye’s annual gas consumption rose from 48 bcm in 2020 to a record 60 bcm in 2021 and is expected to reach 62 bcm to 63 bcm this year, according to official figures.
Türkiye pledged to slowly transition to paying for Russian imports with rubles at a summit between President Recep Tayyıp Erdoğan and his Russian counterpart Vladimir Putin in Sochi in August.
Analysts believe the deal will ensure that Russia will continue to supply Türkiye with gas through the TurkStream pipeline running under the Black Sea.