TURKISH GAS NETWORK & PIPELINES RECENT DEVELOPMENTS

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TURKISH GAS NETWORK & PIPELINES

RECENT DEVELOPMENTS

Ö Öztztüürk SELVITOPrk SELVITOP Head of Department Head of Department 4

4thth _{GAS FORUM}_{GAS FORUM}

10

10--11 September 200911 September 2009 Ljubljana

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Strategies in the Energy Sector

“

“Major AspectsMajor Aspects””

–

– Exploration and production activitiesExploration and production activities –

– Further diversification in primary energy supply, in terms of energy Further diversification in primary energy supply, in terms of energy sources, imports, technologies and infrastructures

sources, imports, technologies and infrastructures –

– Development of renewables and introduction of nuclear powerDevelopment of renewables and introduction of nuclear power –

– Competition oriented market structures in electricity, natural gas and Competition oriented market structures in electricity, natural gas and petroleum sectors

petroleum sectors –

– Energy efficiency along the supply-Energy efficiency along the supply-demand chaindemand chain –

– Oil and gas pipelines (domestic and cross-Oil and gas pipelines (domestic and cross-border) border) & electricity interconnections

& electricity interconnections

2

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Natural Gas Sector

“Main Characteristics and Major Strategies”

– Rapid growth in demand :

security of supply as the main concern the role for competitive markets

– High level of import dependency:

further role for diversification, in imports and in infrastructure

– Interrelation with the power sector and seasonality in

demand:

importance of monitoring, evaluation and emergency measures

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4

– Security of Supply is the main concern

– All market regulations and implementation shall take security of supply concern into account

– Market design

– Program for distribution and generation privatisation – Targets for renewables and fuel mix

By 2023;

- Share of renewables in electricity generation Î at least %30 - Share of nuclear energy in electricity generation Î at least %5 - Decrease share of natural gas below % 30 in electricity

generation

- Utilize all hydro and lignite reserves

Electrical Energy Market & Security of Supply Strategy Paper (18.5.2009)

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140 49 ₄₀ 29 12 12 175 141 53 20 9 8

China TURKEY India World EU OECD average

Cumulative Growth in Demand (%) (2000-2007)

Electricity Consumption Natural Gas Consumption

Electricity and Natural Gas Sectors

“Significant growth in consumption”

5

5 OECD Statistics

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Consumption by Sources Sectoral Consumption

36,8 bcma

(2008)

10 bcma

(1996)

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7 The Republic of TURKEY

2008: % 4,25

2009: % - 5,00

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8

Natural Gas Demand Forecasts

“Need for new imports by 2012 ”

8

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Volume bcma [the Plateau

Period] (bcm / year)

Date of Signature Duration

(Years) _OperationStart of

Russian Fed. (West) 6 14 February 1986 25 1987 Algeria (LNG) 4 14 April 1988 20 1994 Nigeria (LNG) 1.2 9 November 1995 22 1999 Iran 10 8 August 1996 25 2001 Russian Fed. (Blue Stream) 16 15 December 1997 25 2003 Russian Fed.(West) 8 18 February 1998 23 1998

Turkmenistan 16 21 May 1999 30 not in

operation

Azerbaijan 6.6 12 March 2001 15 2007

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10 ¾The National Transmission System is composed of

High pressure pipelines in aggregate 11.000 km.

7 Compressor Stations (totally 200 MW)

4 new planned Compressor Stations

More than 200 Pressure Reducing and Metering Stations directly connected to high pressure grid

¾ LNG Terminal and Storage Facilities

2 LNG Terminals with 5 storage tanks (2 and 3) each having 85.000 m3

capacity

One underground storage facility with 1.6 bcm capacity

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Natural Gas Pipeline Network

USING GAS : 63

UNDER CONSTRUCTION : 4 TENDERING STAGE : 5 PLANNING STAGE : 9

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GAS PIPELINES & PROJECTS

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Natural Gas Geostrategy of TURKEY

13

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%41 %12 %9 %6 %1 %3 %3 OIL % %23 %15 %27 %2 %2 %2 %1 _%1

Oil & Gas reserves around TURKEY

“

Their percentage in Global Reserves

”

NATURAL GAS % 72 % of global reserves 2nd LARGEST GAS MARKET OF THE WORLD

LARGEST

GAS

SOURCES

OF THE

WORLD

Natural Transit Route

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15 15 16 B CM Blue Stream 6.6 BCM 16 B CM Türkmenistan Azerbaijan

Natural Gas Pipeline Network

Iraq

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RUSSIA

–

TURKEY GAS PIPELINE (WEST PIPE)

IN OPERATION SINCE 1987IN OPERATION SINCE 1987

IN 1993, REACHED TO 6 IN 1993, REACHED TO 6 bcma WHICH IS bcma WHICH IS CONTRACTED CAPACITY CONTRACTED CAPACITY IN 1998,IN 1998, ADDITIONAL 8 ADDITIONAL 8

bcma GAS CONTRACTED

AND CAPACITY INCREASED

TO 14 bcma TO 14 bcma IN 2008, APPROXIMATELY IN 2008, APPROXIMATELY 13.2 bcm ( 13.2 bcm (~~ 13) IMPORTED13) IMPORTED TECHNICAL FEATURES Total Length 845 Km

Pipeline Diameter 46-42-34 Inch Cur. Capacity 14 bcma

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RUSSIA

–

TURKEY GAS PIPELINE (BLUE STREAM)

DESIDESIGGNED IN THE FORM NED IN THE FORM

OF DOUBLE LINE BETWEEN

RUSSIA AND TURKEY

STARTED TO OPERATION STARTED TO OPERATION

ON FEBRUARY 20TH, 2003 ON FEBRUARY 20TH, 2003 IN 2008, APPROXIMATELY IN 2008, APPROXIMATELY 9.8 bcm ( 9.8 bcm (~~ 10) IMPORTED10) IMPORTED TECHNICAL FEATURES Samsun – Ankara 501 km

Russia & Black Sea 370 + 390 km Pipeline Diameter 56, 24, 48 Inch Cur. Capacity 16 bcma

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EASTERN ANATOLIAN GAS PIPELINE

CONTRACTED TO 10 bcma CONTRACTED TO 10 bcma

IN 1996

STARTED OPERATION ON STARTED OPERATION ON

DECEMBER 10 DECEMBER 10THTH_{, 2001}_{, 2001} IN 2008, APPROXIMATELY IN 2008, APPROXIMATELY 4.1 bcm ( 4.1 bcm (~~ 4) IMPORTED4) IMPORTED TECHNICAL FEATURES Total Length 1491 Km Pipeline Diameter 16 - 48 Inch Cur. Capacity 10 bcma

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BAKU

–

TBILISI

–

ERZURUM GAS PIPELINE

SALE AND PURCHASE SALE AND PURCHASE

AGREEMENT FOR 6,6

AGREEMENT FOR 6,6 bcmbcm OF GAS WAS SIGNED ON 12

OF GAS WAS SIGNED ON 12

MARCH 2001

IN OPERATION SINCE JULY IN OPERATION SINCE JULY

2007

IN 2008, 4.IN 2008, 4.55 bcmbcm IMPORTED IMPORTED

IDLE CAPACITY IS IDLE CAPACITY IS

CONSIDERED TO BE USED

FOR SHAH DENIZ PHASE

FOR SHAH DENIZ PHASE--2 2 PRODUCTION

PRODUCTION

TECHNICAL FEATURES

Total Length 915 Km Pipeline Diameter 42 Inch Max. Capacity 20 bcma

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ARAB GAS PIPELINE PROJECT

THE EGYPTIAN GAS IS CURRENTLY THE EGYPTIAN GAS IS CURRENTLY

BEING SUPPLIED TO SYRIA

A MOU SIGNED BETWEEN TURKEY A MOU SIGNED BETWEEN TURKEY

AND SYRIA ON 20 AUGUST 2009

CONCERNING INTERCONNECTION

OF GAS NETWORKS

THE NETWORK OF TURKEY AND THE NETWORK OF TURKEY AND

SYRIA WILL BE LINKED WITH THE

CONSTRUCTION OF REMAINING CONSTRUCTION OF REMAINING 230 KM. 230 KM. TECHNICAL FEATURES Total Length :1200 Km Pipeline Dia. :36 Inch Max.Capacity :10 bcma

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IRAQ

–

TURKEY GAS PIPELINE PROJECT

HAVE GREAT POTENTIAL IN HAVE GREAT POTENTIAL IN

ENHANCING BOTH TURKEY

ENHANCING BOTH TURKEY’’S S AND EU

AND EU’’S ENERGY SECURITY S ENERGY SECURITY

MoUMoU SIGNED AMONG TPAO, SIGNED AMONG TPAO,

BOTAS AND SHELL ENERGY

EUROPE BVA ON 20

NOVEMBER 2008

MoUMoU REFERS TO REFERS TO

COOPERATION COOPERATION ININ EXPLORATION, PRODUCTION, EXPLORATION, PRODUCTION, TRANSPORTATION AND TRANSPORTATION AND MARKETING FIELDS MARKETING FIELDS

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TURKEY

–

GREECE

–

ITALY GAS PIPELINE PROJECT

ON NOVEMBER 18, 2007 ON NOVEMBER 18, 2007

GAS SUPPLY STARTED

ON ITG

TRILATERAL IGA ON ITGI TRILATERAL IGA ON ITGI

ON JULY 26

ON JULY 26thth_{, 2007}_{, 2007}

IGI IS TO OPERATE BY IGI IS TO OPERATE BY

2013

ITG Length 296 Km Total Length 808 Km Pipeline Dia. 36 Inch Contracted Cap. 12 bcma

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NABUCCO GAS PIPELINE PROJECT

GERMAN RWE HAS BEEN GERMAN RWE HAS BEEN

THE 6TH PROJECT

PARTNER

PARTNER ININ 20082008

IGA HAS BEEN SIGNED ON IGA HAS BEEN SIGNED ON

13 JULY 2009 AT THE 13 JULY 2009 AT THE NABUCCO SUMMIT IN NABUCCO SUMMIT IN ANKARA ANKARA

NEGOTIATIONS ARE NEGOTIATIONS ARE

UNDERWAY TO SIGN PSA

START START OF OF OPERATION BY OPERATION BY

201

20144

Total Length 3300 Km Pipeline Dia. 42-56 Inch Max.Capacity 31 bcma

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GAS SUPPLY & TRANSIT POTENTIAL (2020)

64-104 BCM 66 BCM 126-166 BCM POTENTIAL SUPPLY DOMESTIC DEMAND POTENTIAL TRANSIT Transbalkan 14 BCM Blues trea m 16-3 2 BCM Egypt-Iraq 14-18 BCM Azerbaijan Turkmenistan Kazakhistan 30-40 BCM Iran 30-40 BCM LNG 12 BCM

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TURKISH GAS NETWORK & PIPELINES RECENT DEVELOPMENTS