Turkey: Liquefied Petroleum Gas License Types

Last Updated: 15 June 2015
Practice Guide by Herdem Attorneys at Law

Production and Distribution:

Refineries engage in LPG production with a refinery license that is obtained in a accordance with the Petroleum Market Law Market numbered 5015 dated 4.12.2003. Only distributor license holders have the right to distribute LPG. The holders of distribution licenses may distribute LPG to their own stations or to stations with which they have signed contracts, may sell bulk LPG to end-users, distribute and sell cylinder LPG, or transport, fill and store LPG. Distributors should fulfill the required criteria of the Law and should operate at least one filling station in order to start the bottled LPG activities.

Distributors may not distribute LPG to vendors of other distributors. Holders of fuel distribution licenses may engage in LPG activities, after obtaining a license in accordance with these aforementioned Law. LPG distribution license owners may engage in petroleum activities in the same way, after they obtain a license in accordance with the 5015 numbered Petroleum Market Law.

Distributors should have storage facilities, filling stations and LPG cylinders that comply with technical regulations. The distributors should have at least 20 times more LPG in their storage than their average daily supply. The delivery of bottled LPG to users is performed by distributors and their bottled LPG vendors.

The distributors shall be obligated to make annual marketing projections and submit them to the EMRA with details in February of each year. They shall also be obligated to evaluate the realization of their projections quarterly every year and submit such evaluation to the EMRA in January, April, July and October, and provide explanations for an increase or decrease of more than 10% in their projections.

The distributors shall establish contractswith vendors. If the contract is not renewed for the continuation of the vendor activity 3 months prior to the termination of the contract, the distributor shall meet the supply need of the vendor until the termination of the contract. At the end of the contract period, the vendor shall commence marketing the products of the new distributor in such a way as to ensure that the new distributor is evident and remove all indications belonging to the former distribution company no later than 1 month. Cylinder LPG vendors shall be obligated to remove their distribution logos at the termination of their contracts. The domestic market share of the distribution undertaking shall not exceed 45% of the total domestic market. Distribution undertakings performing autogas LPG activities shall not grant subsidies to stations under their ownership or treat them differently from vendor stations. In the case that the Distributor has one LPG filling and storage facility, autogas distribution is only allowed in the city where LPG facilities exist and the neigboring cities.

Distribution undertakings shall be obligated to ensure efficient monitoring of quality control of the activities performed under their trademark, and notify the EMRA of cancellations of vendor activity contracts with their justifications.

While performing autogas LPG activities, distributors should be obliged:

  • To supply LPG to Autogas stations, holding their own trademark and symbol, with whom they have signed contracts,
  • Not to supply LPG to stations which have not obtained the required license, permission and certificate from the relevant public institutions and organizations,
  • Not to supply cylinder and bulk LPG to autogas stations,
  • To supply LPG to autogas stations via vehicles, under the same trademark and ownership, carrying the logo and title, and that are compliant with the technical regulations,
  • To observe autogas stations and to inform the EMRA on an annual basis with final reports containing information pertaining to autogas stations regarding the technical regulations and maintenance.

While performing bulk LPG activities, distributors should be obliged:

  • To deliver bulk LPG only to consumers with whom they have signed contracts,
  • To determine the conformity of the contracted customers to whom they supply LPG with the technical regulations for bulk LPG facilities and systems, which were established either by the distributor or the customer, to exercise the controls of the aforementioned facilities and systems periodically, to stop supplying LPG to the facilities which do not conform with the technical regulations.
  • To deliver LPG via vehicles in compliance with the technical regulations, under their ownership or possession and trademark, carrying the logo and title,
  • To notify the EMRA and stop the delivery of bulk LPG to consumers in cases where it is used for different purposes,
  • To establish the consumer's LPG facility in conformity with the existing technical regulation, and during this process to use (kullanmak) expert personnel and to compensate for loss and damages,
  • To inform consumers about the usage of bulk LPG and about the operation of the facility,
  • To take necessary measures in order to meet the claims of consumers regarding malfunction, check inspection and maintenance.

While performing bottled LPG activities, distributors should be obliged:

  • To establish facilities which have the required licenses and which conform to the relevant technical regulations, and which shall perform business activities; to carry out a risk assessment concerning the facilities and the activities performed, and in case they occur; to determine the conditions that may adversely affect the entire workplace and the environment; to prepare an emergency action plan that determines the necessary measures to be taken; the actions to be carried out and the rules to abide by, and to notify the highest ranking civilian EMRA about this plan;
  • To fill up the LPG bottles which only bear the distributor's registered trademark and emblem at the filling stations, and to fill up the bottles of the companies which have a filling contract, in accordance with the provisions of the contract;
  • To take the necessary precautions in order to meet all bottled LPG orders of vendors, in a timely manner without delay;
  • To establish the units which will be capable of carrying out the periodic inspections determined in the technical regulations, for the LPG bottles bearing the distributor's trade mark and emblem; to establish the units which will be capable of carrying out basic procedures that are not within the scope of periodical inspections; namely repairing, heat treatment, sanding, cleaning and metal plating, or to contract with companies that are capable of carrying out these procedures;
  • To perform inspection activities of the LPG bottles before, during and after filling operations.
  • Not to fill rusty, crushed, split, unpainted, cracked, fire damaged and similar bottles, which violate the technical regulations and whose periodic inspections are not carried out, to control the bottles which are brought to be filled, as per the technical regulations before filling, to carry out these bottles' repair and maintenance procedures, or to destroy these bottles unless they might be repaired;
  • To educate the vendors and to acquaint the consumers.

The distributors are authorized to carry out wholesale LPG trade among each other.

Transportation, Storage, Filling, Bottle Manufacturing, Bottle Inspection, Repair and Maintenance

The EMRA determines the assessment criteria for the licenses, which will be granted for the performance of transportation, storage and filling activities of bulk LPG, autogas LPG, and the technical and also determines financial provisions that necessitate the grant of the license as well. The persons involved in the manufacturing of the bottles which will be used for the supply of LPG to the market are liable to apply to the EMRA and present the technical characteristics of the facilities that are capable of carrying out production in compliance with the necessary technical regulations in order to obtain a license, and to manufacture products in conformity with the technical regulations that were mentioned in the other legislation. The persons who will carry out the inspections, repair and maintenance are obliged to obtain a license from the EMRA.

This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.

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