Turkish Regulator Rejects Russian Gas Imports

Turkish energy regulator EPDK has reportedly rejected bids from all 26 of the firms that applied for licences to import 4bn m³/yr of Russian gas.

The regulator made the determination citing the fact none of them have a final export deal in place with Gazprom.

Bids were called for on 4bn m³/yr in 2012-14, 5bn m³ in 2015 and 6bn m³ in 2016, after state-controlled Turkish pipeline operator Botas opted  not to renew a contract with Gazprom that expires on 31 December.

Gazprom had refused to cut its price for Botas, which says it could sue the Russian firm if it offers the independent firms a lower price.

Gazprom signed initial deals with distributor BosphorusGaz, in which it holds a 71 percent interest, and engineering firm Akfel late last month, with a view to signing final deals once these firms secured import licences. Applicants hoped to receive gas from the western corridor route that feeds the Marmara industrial region, which includes Istanbul and several big power plants.

BosphorusGaz, which has been buying 750mn m³/yr of Russian gas since 2009 and wants to up supplies to at least 2bn m³/yr as soon as possible. Akfel has a gas trading joint venture with trading giant Gunvor.

Gazprom also sells 2.5bn m³/yr to Enerco Enerji, Turkey's second-largest gas importer and wholesaler under a deal that expires in 2022. Shell Energy and Eurasia Gaz jointly buy 750mn m³/yr direct from Gazprom.