Turkey Ups The Stakes: Eyes Gas Increases From Russia & KRG Oil Sales

Turkey this week underlined its status as a growing energy consumer and emerging transit hub by striking an agreement to increase gas supplies from Russia and reinvigorating the stalled process of selling oil from Iraqi Kurdistan.

Ankara and Moscow have agreed in principle to increase the capacity of the Blue Stream pipeline, which takes gas from Russia to Turkey via the Black Sea, from 16 billion cubic meters (bcm) per year to 19 bcm/year, Turkish Energy Minister Taner Yildiz announced on 21 April.

Speaking to reporters, Mr Yildiz admitted however that no price had yet been agreed on; saying only that he hoped the two sides would be able to agree on what he described as “a reasonable price.” Turkey currently pays in the region of $12/mn BTU for its imports of Russian gas, around $2.20/mn BTU more than what it pays for its Azeri imports (see table).


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