At present, the Natural Gas Storage Project in Tuz
Gölü which is operated by project partners from Turkey
and China is in progress and its completion is planned until 2018.
Thereby and through other natural gas storage projects such as
North Marmara and Değimenköy, the increase of natural gas
storage to 10 % is planned until 2018 in Turkey.
Neccesity of natural gas storage in legal and financial
As is known, the natural gas storage is a requirement with
regard to legal requirements and financial consequences. According
to the current Natural Gas Market Regulation No. 4646 and also the
Draft of the New Natural Gas Market Regulation, the proof and
guarantee of sufficient natural gas storage capacity is one of the
import license requirements. However, not only legal obligations,
but also financial factors play a role in necessity of development
of new natural gas storage projects. Turkey's energy demand is
high and it is dependent on external natural gas energy. Seasonal
climate changes, interruptions in natural gas flow or natural gas
supply from manufacturers and also the increase of natural gas
energy demand in the market are the most important factors. In the
past, industrial enterprises which are dependant on natural gas had
difficulties because of problems in natural gas flow. Such problems
in industry may cause decrease the competitive capacity of a
country. Another result of natural gas supply problems is the
increase of natural gas prices. Due to such possibilities, many
countries in the world enlarge their natural gas storage
Tuz Gölü Natural Gas Storage Project at a glance
Tuz Gölü Natural Gas Project as the first natural gas
storage of Turkey is conducted by BOTAŞ and an engineering
firm from China and it is intended to provide the supply and demand
balance in Turkey's natural gas market.
Important is also that BOTAŞ has obtained an incentive from
the state in 2012 regarding the customs duty and VAT exemptions.
According to the Resolution of Council of Ministers concerning
state's incentives in investitions, such investments in natural
gas storage are supported under certain conditions, and Tuz
Gölü Project set an example for these investments.
Privilege for natural gas storage license applications
Not only the state, but also legislations in energy market give
priority to natural gas storage licenses. According to amendments
in Petroleum Market, Natural Gas Market and Electricity Market
Regulations, in the event that the natural gas storage license of a
natural gas storage license owner is expired and there are more
than one natural gas storage license applications at the same time
for the same region, other applications will be declined and
returned. Morever, in the event that there are more than one
license applications in storage and/or rafinery in petroleum market
or storage license applications in natural gas market for the same
region at the same time, the Energy Market Regulatory Authority
decides which license applications will be processed. According to
the Natural Gas Market Regulation, issuance of storage license for
manufacturers is also possible under certain conditions. In such a
case, the manufacturer shall operate both activities
In the light of above mentioned legal and financial incentives,
Tuz Gölü Natural Gas Storage Project will contribute to
the natural gas market supply of Turkey especially in industry and
by prevention of demand - supply disparities and through
controlling of price fluctuations in natural gas market.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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ESMA published a revised set of Q&As on EMIR on 11 February, the eve of the EMIR transaction reporting go-live date. They include updates and new guidance in several areas, including transaction reporting.
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