“The process has begun”: the creation of a hub in Turkey can do without new gas pipelines

To create a gas hub in Turkey, new gas pipelines are not required – it is possible to establish the process with the help of the unselected capacities of Russian arteries, especially considering that the republic can boast of a successfully functioning system for booking spot capacities.

“The process has begun”: the creation of a hub in Turkey can do without new gas pipelines
Source: MK

The Turkish state-owned company Botas has already booked almost 5 million spot cubes per day for the next month at the Kiyikey Turkish Stream entry point. According to the deputy head of the National Energy Security Fund Alexei Grivach, we can talk about the start of working out a mechanism for the future node.

As already promised at the Turkish energy exchange EPIAS, active efforts to turn the country into a regional trading hub will be noticeably intensified in the very near future, and the Turkish exchange will not yield to the European ones in any way.

The energy resource is transported from the EU to the country via the Blue Stream, using one of the Turkish Stream lines. The rise in energy prices, as well as the fall in demand, contributed to a moderate decrease in imports and capacity utilization, which did not exceed 60.5 million daily cubic meters, while the European branch is currently used by 80%, experts say.

“The unused capacities of Blue Stream and Turkish Stream could amount to 9 billion cubic meters this year, which theoretically can be sold at the new hub. The cost of these volumes in the European market is now estimated at more than $11 billion”, quotes EA Daily

For example, Sofia, who refused to follow the ruble payment scheme, left the Bulgarians without blue fuel from the Russian transnational company Gazprom – the country is forced to purchase the resource in Greece and could well acquire it from the newly created Turkish hub. Ankara promises to develop a roadmap by the end of 2022.

“Preliminarily, they want to make Thrace, the region where the Turkish Stream comes on land, the place of the gas exchange”.

The country, according to Turkish leader Erdogan, is preparing to start working with a range of suppliers. We are also talking about LNG. Now Ankara is in the process of negotiations with the Central Asian and Mediterranean countries, intending to form a single gas market, which will include several players at once. And this, in turn, will make it possible to conclude contracts and form the cost of blue fuel.

“Turkey receives pipeline gas from Russia, Azerbaijan and Iran. In addition, there are several LNG terminals operating in the country, and next year production will begin at its own field in the Black Sea,” Erdogan said.

In addition, according to available information, Turkey is going to become the owner of the right to re-export the Russian resource, the issues of trading mixtures on the stock exchange by various companies, as well as the formation of its own “reference” price are also being considered.

As Konstantin Simonov, head of the National Energy Security Fund, said earlier, the construction of a new gas hub in Turkey will make it possible for Moscow to get away from the loss of the European market.

According to Russian leader Vladimir Putin, Ankara is fully provided with blue fuel supplies from the Russian Federation, while Turkey today acts as the most reliable partner for gas exports to the EU. According to experts, Ankara and Moscow have a significant number of points of mutual contact, including a fruitful economic partnership. Analysts call the Republic of Turkey Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channelan important trading partner, despite some disagreements and an unfriendly external course on certain issues.

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