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    Turkey agrees to buy LNG from Algeria for 10 years

Summary

Turkey will import LNG from Algeria via tankers for 10 years.

by: Murat

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Natural Gas and LNG News, LNG, News By Country, Turkey

Turkey agrees to buy LNG from Algeria for 10 years

Turkey has agreed to import liquefied natural gas (LNGfrom Algeria for 10 years, commencing Jan 1, 2015. Turkish Energy Minister Taner Yildiz said that the country will import 4.4 billion cubic meters (bcm) of LNG from Algeria per year via its LNG terminals. Currently, Turkey imports 4 bcm/year of LNG from Algeria and 1.2 bcm/year from Nigeria.

After a meeting with Algerian Energy Minister Youcef Yousfi in Istanbul, Yildiz said that the current LNG import agreement extended for 10 years. "We agreed on a fair price for the natural gas, which both countries will be beneficiary," Yildiz said in a press briefing with his counterpart Youcef Yousfi.

He also said that Turkey and Algeria both agreed on a price disputes on natural gas from the earier importing agreement.

"Our priority is energy supply security of Turkey. Currently, we're talking with many countries on this diversification process. We want to import natural gas from Iraq, also want to extend our current gas supply agreements from Iran, Azerbaijan, Turkmenistan, Russia, Algeria as well as Nigeria," Yildiz said in a press briefing.

As Turkey is willing to be a regional hub for natural gas, the country may gain a strong presence with Russia's plan to export gas via Turkey, after shelving South Stream Pipeline Project last week.

Russia's state owned natural gas exporter OAO Gazprom said that it is establishing a new company - Gazprom Russkaya - to build a gas pipeline to Turkey. Turkey and Russia signed a Memorandum of Understanding for a pipeline project bringing Russian gas to the Turkish border with Greece.  If Russian plan will become a reality, Turkey will build a LNG terminal in Thrace region, most probably Enez, near Turkish-Greek border.

The proposed Trans Anatolian Pipeline (TANAP) will bring Azerbaijani gas from Shah Deniz through Turkey and on to European markets. Yildiz said that the groundbreaking for the TANAP project will be held in March 2015.

Currently, Turkey has two operational LNG terminals, in the Marmara district of Eregli and in the Aegean district of Aliaga. 

"The natural gas transmission pipelines of Turkey could be integrated with the EU if Greece does not build a new LNG terminal," said Hızır Hakan Unal, a gas transmission expert for BOTAS, said in a new report, titled 'Third Party Access to Turkey’s Natural Gas Transmission System 2007-2013.'

BOTAS will build a new natural gas pipeline in the northwestern Turkish district of Çorlu by April 2015. "After the completion of the construction of the pipeline, the natural gas capacity in Greece will also increase," Unal said.