Turkish cos mull consortium to import Israeli gas
At least 15 Turkish energy companies are considering forming a consortium to promote a natural gas
import deal from Israel, the Turkish media reports. According to Turcas CEO Batu Aksoy, Turkey could be
an anchor customer for gas from Israel’s Leviathan field by 2020 and gas could also be piped onto
Europe.
He said, “The main advantage of creating a consortium is that companies can share the risks in such a
major deal.” He told Turkish daily Hurriyet that it was not possible for a single company to deal with
such big exports, adding that the estimated 8 billion cubic meters (BCM) of Israeli gas could be taken on
an annual basis by sharing the risks with reliable partners.
Aksoy added that Turkey consumes 50 BCM of gas annually and wants to reduce its dependency on
Russian gas, which supplies about 55-60% of the country’s needs.
He said, “The less dependent a country becomes on a sole provider, the lower gas costs it faces. Europe
wants to decrease the share of Gazprom in its gas market by opening their gas market more and
increasing their liquefied natural gas [LNG] sources… Turkey needs to do the same. Turkey has been
connected to Russia, Iran and Azerbaijan by pipelines. There are two other sources to maximize the
pipelined gas potential: The eastern Mediterranean and Iraq… The inflow of natural gas via six or more
pipelines from five suppliers rather than four pipelines from three suppliers will enable Turkey to gain a
much bigger bargaining position in gas price talks. We believe eastern Mediterranean gas will be a huge
chance for Turkey on the road to becoming an energy hub.”
About 30% of the gas consumed in Europe comes from Russia, and Europe too is seeking to diversify its
sources.
There is economic feasibility but politics is more complicated
Before a gas export deal can go ahead, Israel and Turkey must sign a reconciliation agreement. For many
months now, the Leviathan partners have been talking to Turkish companies about Israeli gas exports.
Since the Marmara incident in 2010, diplomatic relations between the two countries have deteriorated
and Turkish President Recep Erdogan has prohibited gas imports from Israel.
Aksoy said, “In these projects, the construction process lasts the shortest period of time. Political
discussions, the issuance of intergovernmental agreements or the financial feasibility issues take a much
longer time.”
Other complications include: Egypt, which would likely gain preferential treatment should it want to
import Israeli gas; and Cyprus, which would have to approve any Israel-Turkey pipeline, which would
have to pass through its territorial waters.
https://www.hellenicshippingnews.com/turkish-cos-mull-consortium-to-import-israeli-gas/