The History of the Natural Gas Market in Turkey


The first step towards natural gas transportation and trade in Turkey was taken with the 25-year contract signed between BOTAŞ and Soyuzgazexport (USSR) in 1986. The first actual natural gas import was carried out it 1987.

In 1988, a LNG purchasing agreement was signed with Algiers, with the aim to increase resource diversity and to ensure supply security, and in 1994, a LNG Terminal was established in Marmara Ereğli. In 1995, a 22-year LNG purchasing agreement was signed with Nigeria.

A natural gas purchasing agreement was signed with Iran to ensure a new supply pipeline. This additional source became operational in 2001. In 1997, a 25-year gas purchasing contract was signed for receiving natural gas through the trans-Black Sea gas pipeline from Russia. The new pipeline became operational in 2003. This agreement has provided Turkey with its 4th supply source. In 1998, Turkey signed a 25-year gas purchasing agreement with the Russian Federation to receive natural gas through Batı Hattı, which performed the first natural gas import in Turkey.

In 2001, a 15-year gas purchasing agreement was signed with Azerbaijan, ensuring a new supply source for the country. In the same year, a significant step was taken towards the liberalization of the Turkish Natural Gas Market with the publication of the the natural gas market law in the Official Gazette.

Following the publication of the law, the processes regarding tenders for metropolitan natural gas distribution were expedited and Petroleum Pipeline Corporation's (BOTAŞ) transmission network was opened to third party access in 2004, thanks to the efforts of the Energy Market Regulatory Authority (EMRA).

In 2005, the first tender for contract takeover was made, and in 2007, the first contract takeover agreement was signed. In 2007, third party access to the Transmission Network was started. A total contract takeover of 4 bcm was carried out in 2007-2009.

In 2007, Petroleum Pipeline Corporation (BOTAŞ) started exporting natural gas to Greece for the first time.

Egegaz Aliağa LNG terminal started importing natural gas in 2009 to serve as an additional source supply. In the same year, the legislation on third party access to LNG terminals was published by EMRA and entered into force upon approval by the authority in 2010.

The decision of Petroleum Pipeline Corporation (BOTAŞ) in 2011 to decline extending its natural gas purchasing contract with Gazprom Export for purchasing up to 6 billion meter cubes of natural gas per year was an important development in the Natural Gas Market, increasing the share of the private sector. In 2013, this capacity was transferred to the private sector and Kibar Energy and Distribution Ind. Inc. established its prominent status in the liberalized natural gas market with a natural gas purchasing agreement for importing 1 bcm of natural gas.