Turkey's Energy Market Regulatory Authority ("Authority") has introduced new rules for natural gas importers. The rules introduce thresholds of natural gas which importers must be store in underground facilities within five years, as well as related document procedures.
The Authority's Decisions ("Decisions") were published in Official Gazette number 29882 on 8 November 2016, effective from the same date.
A storage obligation is imposed on natural gas importing companies, natural gas distribution companies and legal entities selling natural gas to eligible consumers.
Accordingly, companies importing natural gas via pipe line must store a certain percentages of natural gas in underground facilities within 5 years.
- 6% of total annual imports for companies with import licenses.
- 2% of total annual imports for companies with wholesale and spot liquefied natural gas ("LNG") licenses.
Importers must reserve capacity in underground storage facilities for their full storage obligation amount.
Companies importing natural gas under a long term LNG agreement are deemed to have fulfilled their storage obligation by obtaining services from a LNG storage facility. However, if the nation's overall underground natural gas storage capacity reaches 20% of the total natural gas which will be imported that year, these companies will also become subject to a storage obligation.
Suppliers must submit their Storage Services Agreement to the Authority within seven business days of finalizing the capacity reservation.
Please see below links for the full text of the Authority's Decisions. (only available in Turkish):
- Decision number 6574-4, dated 3 November 2016
- Decision number 6574-6, dated 3 November 2016
- Decision number 6574-7, dated 3 November 2016
- Decision number 6574-8, dated 3 November 2016
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.
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