TANAP, TurkStream projects to develop Turkey's spot natural gas market

Published 16.04.2018 21:53

Jan Haizmann, member of the board of directors for the European Federation of Energy Traders (EFET) and head of the EFET's EU Liaison Office, said yesterday that the spot gas market, which is undergoing testing process within the scope of Energy Exchange Istanbul (EXIST), is an important sectoral move.

Haizman indicated that projects such as the Trans-Anatolian Natural Gas Pipeline (TANAP) and TurkStream will help the newly established spot natural gas market in Turkey develop and propel Turkey to become a gas trading center in the region.

He said the international natural gas projects to be realized in the future will change and improve Turkey's position.

Noting that the spot natural gas market, which will be operational within EXIST's structure, will create a favorable environment in terms of forming and balancing the prices in Turkey and in the region, Haizmann stressed that in order to ensure this, the position of BOTAŞ's market needs to clarify primarily.

Haizmann pointed out that BOTAŞ's import and trade side should be separated for market reform. "It is a must. Hence, the good news is that the spot gas market system is opening up, but without this separation, it will have a limited impact on the market," he continued, adding that in order for the market to work effectively, the system that imports and supplies gas independent from BOTAŞ should be expanded.

Haizmann said the spot gas market is an important step for Turkey to become a regional gas center, but that this situation will be further clarified with the introduction of the real commodity trading in the market.

Haizmann noted that Turkey can transform itself from a natural gas importer into a country that exports natural gas in the coming period. Suggesting that the new gas resources that will come to Turkey in the coming years could place the country in a completely different position, Haizmann said Turkey is a country that is mainly based on bilateral agreements and purchases of Russian gas, adding that the diversity of sources have begun to increase dramatically in recent years. "New liquefied natural gas terminals, new capacity works and increasing the amount of gas storage are very positive developments for consumers in Turkey," Haizmann said. "Projects such as TANAP and TurkStream will help the newly established spot natural gas market in Turkey develop and Turkey to become a gas trading center in its region. These projects reveal Turkey's potential to become a bridge in natural gas."

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