Turkey ends take-or-pay with Russia

Turkey ends take-or-pay with Russia

ANKARA - Anatolia News Agency
Some 3.6 billion cubic meters (BCM) worth of natural gas in the take-or-pay relationship Turkey has with Russia has been nullified, meaning BOTAŞ, Turkey’s state-run pipeline company, is to increase its cash flow $1.3 billion in April, said Turkish Energy and Natural Resources Minister Taner Yıldız.

“Previously, we paid cash in return for gas we didn’t use, but now, we pay for one quarter of the amount we use. We managed a great gas trade with Russia as we erased our take-or-pays worth $3.6 billion with Russia,” he said.

Yıldız emphasized that demand is guaranteed when the investor is the owner of the gas, not the merchant, referring to recent talks on Qatar investing in a liquefied natural gas (LNG) facility in western Turkey.

The minister also revealed that Qatari investors prefer to partner with existing facilities Aliağa or Marmara Ereğli. He said that the Aliağa facility operated with 2 BCM in 2012, whereas its capacity is actually 6 BCM. “The targeted production amount is 6 BCM and Turkey will prioritize using the gas produced there,” he said.

However, he also added that Turkey would welcome any attractive offers coming from any country, including the U.S., and Qatar was not the only option, though Turkey would appreciate an order from Qatar. Recently, Turkey stressed interest to Libya as well in terms of oil exploration abroad.