By Ovunc Kutlu
ANKARA
The U.S. Energy Information Administration (EIA) has underlined Turkey's pivotal geopolitical position for natural gas deliveries from Turkey's surrounding region to Europe.
According to a note published on its website Wednesday, the administration highlighted the importance of the proposed and under-construction natural gas pipelines around Turkey that could deliver gas from Central Asia, Russia and the Middle East to European countries.
"The Trans-Anatolian Natural Gas Pipeline [TANAP], from the Georgia-Turkey border to the Turkey-Greece border, officially started construction in March 2015, and the Trans Adriatic Pipeline [TAP], from the Turkey-Greece border to Italy, plans to start construction in 2016," the U.S. EIA said.
TANAP and TAP pipeline projects are integral parts of the larger Southern Gas Corridor that plans to carry 16 billion cubic meters of Azeri gas through Turkey annually to Greece and further into Europe. Its capacity is planned to increase to 23 billion cubic meters by 2023 and to 31 billion cubic meters by 2026 per year.
The adminsitration highlighted Azerbaijan's significance as well, citing that the country's "importance as a natural gas producer and exporter is growing".
"Until 2007, Azerbaijan was a net importer of natural gas, largely dependent on imports from Russia...The South Caucasus Pipeline [SCP], which began operating in 2007, provided transportation capacity out of the Caspian region that did not rely on crossing Russian territory," it added.
Currently, the South Caucasus Pipeline carries around 6.6 16 billion cubic meters of natural gas annually to Turkey.
Another project that increases Turkey's role for European energy security is the Russian-proposed Turkish Stream gas pipeline.
After Russia scrapped the South Stream project, the proposed Turkish Stream pipeline plans to carry Russian gas to the Turkish-Greek border via Turkey's Thrace region on its northwest.
"However, Russia and Turkey have been unable to reach a final agreement on the pipeline and, in July 2015, Gazprom canceled its contract with Saipem, the Italian company contracted to lay the first part of the pipeline," the U.S. EIA noted.
Initially, the pipeline was planned to carry a total of 63 16 billion cubic meters gas over four lines every year, while 15.75 16 billion cubic meters of its gas would be delivered to Turkey's domestic market for consumption.
However, Alexei Miller, head of Russian gas giant Gazprom, said last week that Russia decided to halve this to 31.5 16 billion cubic meters to deliver it over two lines.
Talks between Russian and Turkish officials continue, as the project is currently projected to be completed by 2017.
Other potential countries which may begin to have exports to Europe via Turkey are Iran and Iraq.
"The lifting of sanctions on Iran would allow European countries to import gas from Iran. Although Iran already exports natural gas to Turkey, it has long had plans to export larger volumes of natural gas through Turkey to Europe," the U.S. EIA said.
Iran currently exports 10 16 billion cubic meters of gas to Turkey every year. Whether this amount increases, or new gas pipelines are built, yet remains to be seen. However, with foreign investment flowing into Iran's energy sector, Tehran aims to raise its gas exports both towards the east, mainly to China, and towards the west to Europe.
Hamid-Reza Araqi, Iran's deputy oil minister in charge of gas affairs, said on Oct. 3 that it was possible for his country to export gas to Europe through Turkey, according to Iran's petro energy information network SHANA.
However, the administration said that other hurdles would remain, such as "agreeing on a natural gas price and meeting Iran's growing domestic demands for natural gas, especially for enhanced oil recovery, power generation, and winter heating".
In addition, Turkey may receive gas from northern Iraq in future as well.
"Turkey continues to negotiate with the Kurdish Regional Government and the Iraqi government on building a natural gas pipeline from northern Iraq to Turkey. While no agreement has been reached, BOTAS, Turkey's state-owned pipeline company, has begun extending the domestic natural gas transmission system to the Iraqi border," the U.S. EIA concluded.
