TANAP To Change EU Gas Dynamics Say Yildiz
The 1,841 kilometer long natural gas TANAP natural gas pipeline project, which will carry 31 bcm per year Azeri gas to Turkey's western border, will change the demand dynamics of the European Union according to Turkey's Energy Minister.
Taner Yildiz said that TANAP project will expand the EU's demand for Azeri natural gas. In a press briefing in Istanbul with International Energy Agency's Chief Economist Fatih Birol, Yildiz said that the European Union demand will increase gradually with increasing need of diversification and energy supply security.
Yildiz also said that TANAP may help to ship Turkmen gas to the European markets. "We have already made the necessary legal framework to include Turkmen gas to TANAP," he said.
Addressing natural gas prices,Yildiz said that due to currency fluctuation and strengthening US dollar against developing countries currencies, Turkey cannot reflect the falling prices in gas to the natural gas customers. "We made our deals with US dollars, this may hurt customers if we reflect the pricing spread," Yildiz said. He also said that the ministry is watching developments closely in the currency markets as well as energy markets.
ENERGY SUPPLY SECURITY
Fatih Birol outlined the importance of TANAP for the European Union. "Energy supply security is the utmost priority in today's environment for the European Union. I'll focus my efforts to natural gas when I start my duty as the Executive Director (of the International Energy Agency) on September 1st," Birol said.
"Energy supply security problems will continue, and grow bigger in time. All the parties may need to focus for the changing needs of energy security in the years ahead," Birol said.
The European Union is trying to assess natural gas needs in a supply crisis. Earlier this week, Maros Sefcovic, European Commission Vice President for Energy Union, said that EC is studying gas needs to negotiate better with gas suppliers if there were a crisis.
Mr. Birol also said that the oil prices may not be sustained at this $50-60 per barrel. "The 50% fall in oil prices is just temporary, the level is cannot be sustainable."
- Murat Tinas