The tender processes and construction works on TANAP Project are
in progress and start of the construction of this pipeline is
expected in this year. This project has gained importance before
its start to operate. By reason of political issues between Ukraine
and Russia, countries in the Europe may be faced with a natural gas
problem in this year. Therefore, Europe has been looking for a
solution or prevention, in the event that the Europe purchases
natural gas from Iran, the transmission of this natural gas through
TANAP is topical recently.
Importance of the natural gas
In spite of new alternative energy resources, the natural gas
has been keeping its place and share between all energy resources
since long years. Not only Turkey, but also many other countries in
Europe are natural gas import dependent1. According to
the statistics, most of natural gas has been imported from Russia.
Due to this factor, the political issues between Russia and Ukraine
may affect the natural gas supply of Europe in a negative way.
Since the natural gas supply may be affected from different factors
such as political issues or climate conditions, numerous countries
have been working on use and development of other sustainable
energy resources such as wind and solar.
TANAP Project at a glance
TANAP Project, one of the biggest pipeline projects in Turkey,
negotiations of which have been started in 2011 intends to provide
the natural gas from Azerbaijan to Europe through Turkey. After
completion of this project, which is expected in 2018, the natural
gas supply of Europe and Turkey will be provided to a large extent.
Following the first natural gas flow with this pipeline, the
transported natural gas amount will be increased each year.
After the natural gas in Israel has been topical in recent
years, the option of transport of this natural gas to Europe
through TANAP has been brought into question. Accordingly, the
natural gas supply of Europe and Turkey may be provided from
several countries through this pipeline, in the event that these
expectations realize in coming years.
How to provide security of natural gas supply?
As mentioned above, natural gas supply security plays an
essential role especially for continuation of the industry which
use the natural gas in their market activities and as a conclusion
of this, for continuation and increase of competition of the
related country in industry with other countries. With regard to
natural gas supply security, the importance of natural gas storage
comes into question, which has been developed in several countries
One of the advantages of natural gas is its storability.
Especially for above mentioned cases such as supply problems
arising from political issues, financial factors or climate, which
affect the natural gas supply, the storage of natural gas
contributes to security of its supply.
As is known, the natural gas storage activities have been
supported in Turkey with laws and regulations under certain
conditions. Pursuant to an amendment on the Council of
Ministers' Decision of 2012 ("Decision"), the natural
gas storage investments over a certain amount have been regulated
as privileged investments under the conditions of the Decision.
Accordingly, natural gas storage projects will benefit from
financial incentives under these conditions.
Natural gas storage as a market activity may be implemented
under the condition of obtaining the related license. Moreover,
natural gas storage license applications have also the priority to
license applications in the electricity and oil markets.
In conclusion, the supply security of natural gas is very
essential as well as its supply or import in order to avoid
problems in energy supply. In this regard, the increase of natural
gas pipeline projects' number and of the natural gas storage
capacity has become important for natural gas import dependent
1 According to the statistics, natural gas has been used
by the production of 43,5 % of the electricity in Turkey.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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