Turkey to raise gas storage capacity

By Ovunc Kutlu

ANKARA

Turkey is planning to increase its annual natural gas storage capacity by four billion cubic meters, Turkish Economy Minister Nihat Zeybekci said Thursday.

"Totaling $10.5 billion, there will be two investments for these facilities that are planned to be constructed in the Tarsus district of Mersin province in southern Turkey," Zeybekci said in a statement.

"We have prepared two strategic incentive documents for gas storage investments valued at $7 billion and $3.5 billion," he added.

The economy minister emphasized that when the state-owned Petroleum Pipeline Corporation's (BOTAS) planned gas facility near Tuz Golu (salt lake) is completed, 10 percent of Turkey's annual gas consumption would become storable.

"That way, our country will be least affected by price fluctuations in the international market and changes in seasonal demand," Zeybekci said.

The minister said that industrial and household natural gas consumption was projected to grow in the next decade due to increased development in Turkey.

"Gas storage is important to secure our energy demand as well. Our energy imports constitute a significant portion of our overall imports and play a major factor for our current account deficit," he added.

In 2014, Turkey consumed around 45 billion cubic meters of natural gas. According to the Turkish Ministry of Energy and Natural Resources' strategic plan for 2015-2019, there are plans to raise gas storage capacity to 10 percent of the country's annual consumption level by the end of 2019 and to further raise this to 20 percent in the long-term.

Gas storage plans in Turkey

Currently, Turkey has an operational gas storage facility in its northwestern Marmara region in Silivri town. The facility has a 2.67 billion cubic meters of gas capacity with a 20 million cubic meters per day withdrawal rate, and an injection rate of 16 million cubic meters a day. Operated by Turkish Petroleum, the facility's storage capacity is planned to increase by 180 million cubic meters, while its withdrawal capacity is aimed to rise by 30 million cubic meters per day by 2017, according to Gas Infrastructure Europe.

Another operational gas storage facility is located in central Turkey at Sultanhani in Aksaray province. Operated by Petroleum Pipeline Corporation, this facility has a storage capacity of 1.5 billion cubic meters.

The facility in central Turkey near Tuz Golu (salt lake) is planned to have a gas capacity of 480 million cubic meters, with a withdrawal rate of 20 million cubic meters per day, and an injection rate of 15 million cubic meters. It is planned to be completed between 2017 and 2019.

The facility in Tarsus province in southern Turkey will be undertaken by Toren Natural Gas Storage and Mining Company, a subsidiary of Turkish energy company, Bendis Energy Production and Mining Consultation. The facility will have 450 million cubic meters of gas storage capacity with a withdrawal rate of 24 million cubic meters.