This year saw an increase in international cooperation between Türkiye and international players in the field of natural gas. Other top news reports in the country’s energy sector this year covered the first gas flow from the Sakarya Gas Field to the local transmission system, a new oil discovery, and a milestone in the country’s first nuclear plant when it achieved official nuclear status.
The country began the year with a natural gas cooperation agreement with Bulgaria.
On Jan. 3, the former Minister of Energy and Natural Resources, Fatih Donmez, and his Bulgarian counterpart, Rosen Hristoviki, signed a 13-year natural gas agreement for the annual transfer of 1.5 billion cubic meters of gas to Bulgaria. The first shipment from this agreement, which is poised to contribute to Europe’s natural gas security, began on April 12.
On May 18, Italian oil and natural gas infrastructure service company Saipem and Turkish Petroleum (TPAO) subsidiary TP-OTC signed an engineering, procurement, construction, and installation contract within the framework of the second phase of Sakarya Gas Field. Under the contract, Saipem will build a 175-kilometer-long, 16-inch-diameter pipeline 2,200 meters (7,217 feet) under the sea in the Black Sea, where Türkiye made its biggest gas discovery to date. The project is scheduled to start in the summer of 2024.
On June 16, Turkish company Kalyon Holding emerged victorious in the Romanian Black Sea Coast-Podishor Natural Gas Pipeline tender, leaving strong international contenders behind. Kalyon Holding and Romania’s state-owned gas company, Transgaz, signed the agreement for gas transfer from Romania's Black Sea reserves to connection points in the country’s interior through a pipeline that will be built between the Black Sea coast and Podishor.
In the second half of the year, Türkiye signed natural gas export agreements with Hungary, Romania and Moldova.
On Aug. 21, the natural gas export agreement with Hungarian state company MVM CEENergy was announced by Turkish Petroleum Pipeline Corporation (BOTAS) for the first export of natural gas via pipeline to a European country that does not border Türkiye. The agreement will come into force next year.
On Sept. 27, an agreement was reached between BOTAS and OMV Petrom for the supply of up to 4 million cubic meters of natural gas per day to Romania. The agreement, which came into effect on Oct. 1 and will run until March 31, 2025. A day later, BOTAS announced an agreement with East Gas Energy Trading Company to export 2 million cubic meters of natural gas per day to Moldova from Oct. 1, 2024 onwards.
On Sept. 28, Turkish Electricity Transmission Corporation (TEIAS) and AzerEnerji signed an agreement to establish electricity trade infrastructure between Azerbaijan and Türkiye in the form of a Türkiye-Azerbaijan Interconnection Project.
On Nov. 16, in the field of oil, Türkiye's Petrol Ofisi Group signed a share purchase agreement to purchase bp's fuel operations in Türkiye.
On Nov. 21, the country extended the existing liquefied natural gas (LNG) import agreement by three years with Algeria that sees Türkiye purchase 4.4 billion cubic meters of LNG annually.
The country also expanded renewable energy cooperation.
On July 21, TotalEnergies purchased 50% of the shares of Ronesans Enerji. Ronesans Enerji, which will continue operations under the partnership umbrella of Ronesans Holding and TotalEnergies, aims to become one of the three largest green energy companies in Türkiye.
- First flow from country's biggest gas discovery starts
This year witnessed the first time natural gas from the Sakarya Gas Field reached shore via pipeline and was connected to the local transmission system.
On April 5, underwater pipelaying was completed to carry Black Sea gas onshore.
On April 20, Donmez revealed that Black Sea gas was recorded as the world's shortest offshore field development project, from the first discovery to production. He confirmed that when the project reaches full capacity, it will meet approximately 30% of Türkiye's current natural gas needs.
On April 20, President Recep Tayyip Erdogan announced during the Black Sea Natural Gas Commissioning Ceremony that household gas would be free for up to 25 cubic meters per month for a year, with the cost deducted from bills.
On May 11, Donmez disclosed the progress made during the first phase of the Sakarya Gas Project and added that once the second phase is completed within three years, daily production will increase from 10 million cubic meters to 40 million cubic meters.
On Sept. 27, TPAO General Manager Melih Han Bilgin shared that gas production from the Sakarya Gas Field reached 4 million cubic meters.
- Oil discovery supports country's energy independence goals
In a bid to increase domestic output and reduce foreign dependence on oil, the country continued exploration for its own energy resources.
On May 2, Erdogan shared the news of a new oil discovery in the southeastern region of Gabar with a daily production capacity of 100,000 barrels. He also detailed that the oil discovered at a depth of 2,600 meters (8,530 feet) would be extracted from 100 wells and would meet one-tenth of the country’s daily consumption.
Türkiye's oil discovery is estimated to increase the country's overall hydrocarbon production from 100,000 barrels per day (bpd) to 180,000 bpd, with an estimated annual financial contribution of around $2.9 billion.
On May 21, TPAO started drilling activities in the Martyr Aybuke Yalcin-2 well in Gabar.
On Dec. 11, Turkish Petroleum Corporation (TPAO) announced that Türkiye's oil production in the southeastern Gabar region exceeded 30,000 bpd, a quantity that is in keeping with the production goal of 35,000 bpd this year, while the aim is to ramp up production to 100,000 bpd next year.
Türkiye held negotiations with Iraq to resume oil supplies. Following a decision made on March 23 by the International Chamber of Commerce (ICC) on oil shipments between Türkiye and Iraq, oil transmission from Iraq to the Ceyhan port on the Turkish Mediterranean coast was suspended.
On Aug. 23, during discussions between Bayraktar and the Iraqi Deputy Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani in Ankara, an agreement was signed to cooperate on the reconstruction of the 970-kilometer-long pipeline system on Iraqi territory, which had been damaged by the devastating earthquakes that struck Türkiye in February.
On Oct. 2, Bayraktar said the Iraq-Türkiye oil pipeline would resume operations and transmit 500,000 barrels of oil per day to global markets.
On Dec. 13, Abdel-Ghani announced that Iraq had reached an "understanding" with Türkiye about resuming northern oil exports through the Iraq-Türkiye pipeline.
- Türkiye's first nuclear plant receives nuclear plant status
Construction is ongoing for the country's first nuclear power plant in the southern Mersin province.
On April 27, the Akkuyu Nuclear Power Plant gained official "nuclear facility" status, and the first nuclear fuel was sent from Russia to Türkiye, marking an important stage in the country's nuclear journey spanning more than half a century.
Bayraktar confirmed on Oct. 5 that the first reactor would start operations on Oct. 29, 2024.
On Dec. 12, Akkuyu Nuclear Company received permission from the Turkish Nuclear Regulatory Authority to operate the first power unit, having submitted its first batch of documents on March 17 and its second on Aug. 24 for commission authorization.
- Renewables and electric vehicles
On April 8, Türkiye awarded the first pre-licenses for solar and wind energy with storage. Mustafa Yilmaz, the head of the Energy Market Regulatory Authority (EMRA), said they anticipate realizing investments worth $1.5 billion in these fields.
On May 2, the official opening ceremony of Europe's largest solar power plant, the Karapinar Solar Power Plant, was held.
On May 20, Türkiye's solar energy installed power exceeded the 10,000-megawatt mark, from power generation from plants across 78 provinces.
On Oct. 11, Bayraktar announced the country’s plans to increase installed solar and wind power by 5 gigawatts every year until 2035.
On Nov. 7, Bayraktar confirmed that the Wind Energy Potential Atlas was updated to reveal wind potential of approximately 100,000 megawatts under current technological conditions but could reach up to 150,000 megawatts with developments in wind turbine technologies.
The country also raised its emphasis on and financial support for electric vehicles (EVs). The number of EV charging points across Türkiye reached 12,067 in 5,614 stations as of Dec. 25.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr