Turkey, Azerbaijan sign deals in field of energy

Turkey, Azerbaijan sign deals in field of energy

BAKU - Neşe Karanfil
Turkey, Azerbaijan sign deals in field of energy

Turkey and Azerbaijan have signed five agreements in the field of energy, Turkish Energy and Natural Resources Minister Fahrettin Dönmez has said.

“When we consider our motto of ‘two states, one nation,’ our ongoing projects are running successfully,” Dönmez told reporters on Dec. 22 in the Azerbaijani capital of Baku, where he attended the Turkey-Azerbaijan 1st Energy Forum.
“We can also carry this relationship to third countries, especially on energy,” he said.
The areas of the agreements were natural gas, mining, geological exploration, mineral research and electricity transmission.

Dönmez noted that there is a shortage of energy supply in Europe, especially regarding natural gas.

“In order to meet the increasing demand, we are holding some preliminary talks on increasing the existing capacity,” he said.
“These are not issues that will be solved from today to tomorrow, because there is also the production side of this. It is not enough to increase the capacity in the pipeline alone. The main thing is to work on increasing the amount of production in the Caspian.”

Power generation was also on the agenda of the talks between Turkish and Azerbaijani officials, Dönmez said.
“Azerbaijan has solid targets for renewable energy. They have a huge potential. They have determined green energy targets particularly in the Karabakh region, which has been liberated from [Armenian] occupation,” said the minister.

Caspian Sea offshore and onshore wind turbine projects are also on the table, according to Dönmez’s remarks. Representatives of Turkish companies are expected to meet with Azerbaijani officials and businesspeople on those projects in the upcoming months.

Dönmez also said that an electricity trade route could be established between the two countries through Georgia, a country that both Turkey and Azerbaijan currently has power transmission deals.

Turkey’s natural gas consumption will reach nearly 60 billion cubic meters this year, according to the Energy and Naturel Resources Ministry. No supply problems have occurred thanks to long-term contracts and extra contracts.
In recent years, Turkey paid approximately $12 billion for around 45 billion cubic meters of imported natural gas annually.

Turkey imports natural gas through pipelines from Russia, Azerbaijan and İran. It also buys liquefied natural gas (LNG) from suppliers including Qatar, Nigeria, Algeria and the United States. Nearly a third of the country’s gas needs are met with LNG supplies.

A recently discovered natural gas field in the Black Sea is set to provide nearly a third of Turkey’s domestic needs when it reaches peak production capacity by 2026. Turkey could start with the initial annual production capacity of 3.5 bcm at Sakarya Gas Field in 2023.

State-run energy company Turkish Petroleum Corporation (TPAO) plans to drill 40 wells over four phases in the Sakarya field, which is estimated to have recoverable gas reserves of about 540 billion cubic meters.

President Recep Tayyip Erdoğan has touted the find - the biggest ever in the Black Sea - as a boost to Turkey’s $765-billion economy.