"Turkey will become the center of gas trade" - Oguzhan Akyener 

  08 February 2022    Read: 616
"Turkey will become the center of gas trade" - Oguzhan Akyener 

"Spot and swap gas markets are very different. Spot means market prices. Spot markets exist in many countries around the world. Turkey is also striving to create a spot market. A spot market can be thought of as volatile prices adjusted beyond long-term contracts. An example of a swap market is the gas exchange between Azerbaijan, Iran and Turkmenistan.”

Oguzhan Akyener, the president of Turkey's Energy Strategy & Political Research Center (TESPAM) told AzVision the aforementioned.

According to him, gas exchange agreement signed between Azerbaijan, Iran and Turkmenistan on November 28 last year, which came into force on December 1, will be more favorable for Nakhchivan.

- Most likely, the project envisages the use of a pipeline from Turkey to Nakhchivan and some of it to Azerbaijan. Such swap agreements have been used in the past as well. Thus, Iran has repeatedly had problems in meeting the gas needs of the northeastern regions and therefore, it imported gas from Turkmenistan. In exchange for gas, Iran and Turkmenistan exchanged various products. That is, this trade was not always done through paying money. A while ago, disagreements emerged over the price, so the gas supply process was halted. At the same time, Iran had a trade agreement with Azerbaijan. Azerbaijan supplies gas or other products to Iran, and in return Iran supplies Nakhchivan with gas. If we pay attention, these two trading patterns are already becoming a model. In other words, Iran will supply the northeastern territories with gas it purchases from Turkmenistan, and will send its own gas to Nakhchivan through its western stations.

- How realistic is the transportation of Turkmen gas through the Southern Gas Corridor?

- This swap agreement has nothing to do with the Southern Gas Corridor. At present, Azerbaijani gas is supplied to Turkey and European countries via the Southern Gas Corridor. Through the expansion of the TANAP and TAP projects, a number of new sources will be added along with Shah Deniz-2. Turkmen gas as provided in the swap agreement is almost enough to satisfy the needs of Nakhchivan. A lot of work needs to be done to get additional gas from Turkmenistan. In addition, the capacity of the pipes is not enough. Therefore, a new swap agreement of larger volume is not yet the subject of discussion.

- Recently, the problems with the natural gas pipeline from Iran caused troubles with the gas supply of some regions of Turkey. In this regard, what is the significance of Azerbaijani gas in Turkey's gas supply?

- Indeed, Turkey is experiencing problems due to insufficient gas supplies from Iran. There have been similar problems before. At that time, Azerbaijan provided assistance to Turkey. Since we see Azerbaijan not any foreign country, but a fraternal state, we use its opportunities; if it is possible to get more gas, an agreement is implemented as soon as possible. Thus, with the help of Azerbaijan, we get out of such tough situations due to the supply of gas from Russia and the spot market. We always see support from Azerbaijan in this direction. It is worth recalling that after the expiration of the Shah Deniz-1 contract, the agreement for 11 billion cubic meters is also one of them.

- Turkey also plays the role of a gas hub. What benefits does this create?

- Turkey is advancing towards becoming a gas trade center. An example is the TANAP project, the first pipeline. As Turkey develops resource diversification and a market mechanism, it will begin to play the role of a hub for gas pipelines. The supply of gas to Europe via the Turkish Stream also reinforces this role.

- With the liberation of Karabakh from occupation, a new line will be laid this year for an uninterrupted supply of natural gas to Nakhchivan. It is planned to spend 185 million liras on the joint project of BOTAŞ and SOCAR for the construction of the Igdir-Nakhchivan gas pipeline. Why is this important?

- As you mentioned, certain processes in the region have changed following the Second Karabakh War. One of them is gas supply to Nakhchivan, which was provided with gas by Iran. A number of problems arose with the gas supply. For this reason, investments were made and the construction of the Turkey-Igdir-Nakhchivan natural gas pipeline began. Upon the completion of this pipeline, some of the gas supplied by Azerbaijan to Turkey will be transferred to Nakhchivan. As a result, Nakhchivan's energy security problem will be completely solved.

Banu Salmanli

AzVision.az


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