VOL. XLV

No 27

8-July-2002

 

TURKEY

 

Turkey Asks Gas Suppliers To Cut Import Volumes

 

Turkey has contacted all its gas suppliers and requested that they cut import volumes this year to match lower-than-expected domestic demand, which has fallen as a result of the economic downturn in the country. The request to cut contracted supplies was discussed during the recent meeting in Ankara between Algerian Energy and Mines Minister Chakib Khelil and his Turkish counterpart Zeki Cakan. MEES learns from authoritative sources that all suppliers have refused the request and indicated that take-or-pay penalties will be activated if Turkey lowers its gas offtake. In January, Turkey’s Petroleum Pipeline Corporation (Botas) cuts its gas demand forecasts for 2002 to 20 BCM due to the weak macroeconomic environment (for table, see MEES, 28 January). Total contracted supply for the year however stands at 25 BCM, with Algeria committed to supply 4 BCM of LNG and Iran committed to the same amount of pipeline gas via the recently-completed cross-border pipeline. Turkey’s over-supply situation in gas terms is about to be exacerbated by the planned inauguration in October of the Blue Stream pipeline, which will supply Turkey with some 16 BCM of gas when used at capacity (MEES, 10 June).