The high economic growth of Turkey which has been going on for
more than a decade now intensified Turkey's need for more
energy. It is estimated that Turkey is going to need a substantial
volume of energy which will amount to a 7 % annual growth for the
Turkish energy market until the year 2023. The total amount of
investment that is going to be needed in order to cover
Turkey's needs for energy by 2023 is USD$ 120 billion. In order
to secure the necessary amount of energy to cover the needs that
high economic growth dictates, Turkey needs to diversify its energy
suppliers and secure the stable flow of oil and gas that its
industry needs. In order to do so Turkey has taken the decision to
transform itself in to an energy hub. The advantage that
Turkey's geographical location poses for the country is a well
known fact. Turkey is strategically located in between Asia and
Europe and perfectly serves as a transit route for energy due to
its proximity both to the energy suppliers and to the consumers.
Upon their completion Turkey is expected to house 13 different
natural gas and oil pipelines passing through its territory in the
short to midterm. Once and if completed the proposed projects of
Arab Gas pipeline, Nabucco pipeline, Qatar-Turkey pipeline and
Trans-Anatolian pipeline (TANAP) will turn Turkey into major energy
The Issue of Diversification and the New Opportunity in the
The discovery of new oil and gas fields in the Eastern
Mediterranean provides a newfound opportunity for Turkey to
diversify its energy suppliers. Especially the discovery of the
Leviathan gas field which is considered as one of the largest off
shore gas findings of the decade is an important opportunity for
all the countries in the region including Turkey. The numbers will
reveal why the discovery of this well might be a game changer in
the energy politics of the region. The Leviathan well is considered
to house 25 million cubic feet of natural gas and more than 600
million barrels of oil. When these numbers are combined with the
additional gas reserve which is estimated to be around 220 billion
cubic meters in the Tamar gas field, it is self revealing that the
region will soon serve as one of the most important suppliers of
energy in to the world markets. Turkey, by its very geographical
location, is one of the most important candidates to serve as a
transport route for the conveyance of the gas and oil extracted
from the Easter Mediterranean to Europe. Moreover the existence of
gas pipelines for years inside the Turkish territory has already
provided Turkey with the labor force which has the necessary
technical expertise to maintain and repair the pipelines and the
related facilities. Apart from the geographical position of being
located in close vicinity of hydro-carbon consumers and producers
and having obtained the necessary expertise for maintenance, size
of the Turkish market itself makes Turkey an indispensible partner
to parties involved in the Eastern Mediterranean gas fields.
On the one hand Turkey exploits its location, market clout and
expertise to serve as an energy hub and on the other hand it takes
the necessary measures to ensure the energy price stability that
such a role requires. In this regard the boldest step that has
being taken by Turkey is the establishment of EPİAŞ which
is going to serve as an energy exchange to stabilize the prices.
The Electricity Market Law points the second quarter of 2014 for
the establishment of the exchange and institutions will be jointly
owned by the Istanbul Stock Exchange (Borsa İstanbul), private
sector players and the Turkish Electricity Transmission Company
(TEİAŞ)to ensure investors' confidence. Once it is
established Turkey will an energy market with more foreseeable and
stable prices that can fuse its geographical advantage, technical
expertise and market scale with investor confidence.
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On 6 October 2016, the UK's Secretary of State for Communities and Local Government, Sajid Javid, overruled local councillors on appeal and approved Cuadrilla's plans to explore for shale gas in Lancashire.
On Friday, 7th October the General Assembly of the International Civil Aviation Organisation passed a resolution, resolving to implement the world's first global regime for combatting CO2 emissions from aircraft.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
The WTO dispute "India – Solar Cells" concerns the Jawaharlal Nehru National Solar Mission ("National Mission"), launched in India six years ago.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).