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Turkey is prepared to increase its natural gas exports to the European Union, provided the EU offers long-term commitments to justify the necessary infrastructure investments, Energy and Natural Resources Minister Alparslan Bayraktar said Tuesday.
The EU is striving to secure alternative gas sources to replace Russian supplies that transit through Ukraine. One option could include diverting Azerbaijani gas sold to Turkey to Europe and substituting it with additional Russian gas sales in the Turkish market. Türkiye prefers expanding exports via Bulgaria.
“I need this guarantee from you – 10 years, 15 years, whatever it is, you need to give something,” Bayraktar told Bloomberg News in an interview.
He called “convoluted” Europe’s complex gas swap suggestion proposed to circumvent Russian gas.
“These discussions are made without knowing the capacity and the market,” Bayraktar said. He highlighted the current limitations of the Turkey-Bulgaria interconnection capacity, which can currently only handle half of the 7 billion cubic meters (bcm) per year that Turkey can supply.
Bayraktar said Ankara is open to collaborating with Azerbaijan’s national energy company SOCAR to increase capacity to 10 bcm, but it requires assurances about European demand.
The situation underscores the diplomatic challenges in replacing Russian gas flows to Europe, with conflicting agendas between buyers and sellers. The Bloomberg report cited consultants Energy Aspects Ltd., which recently cited the difficulties in replacing Russian gas with Azerbaijani supplies due to political and physical barriers.
Bayraktar pointed to the agreement Turkey sealed with Bulgaria last year to import up to 1.5 bcm of LNG and re-export it westward as a more flexible solution. Still, the deal is under scrutiny by the EU’s antitrust watchdog over what are said to be concerns that it is anti-competitive.
Bulgaria is reportedly seeking to renegotiate the deal due to high costs, paying nearly $500,000 a day for access to the Turkish gas grid, and is looking to allow a third party to use the rights.
Officials have repeatedly voiced Turkey’s eagerness to become a regional gas hub and the government has invested heavily in new storage and LNG facilities, as well as exploration and production in the Black Sea.
Although it is heavily dependent on imports to meet domestic demand, Turkey signed multiple export contracts with Romania, Moldova and Hungary last year for a small amount of gas.
Bayraktar said they were also exploring gas imports from Turkmenistan via a swap arrangement through Iran. He expressed hopes to reach a deal during a visit there later this month.
Turkey is set to boost its gas supply with a long-term LNG import contract with Exxon Mobil Corp, with a provisional deal signed in May. Bayraktar expects to announce the final contract soon, along with other agreements with undisclosed companies.
Despite Europe’s efforts to reduce reliance on Russian fuel since the Ukraine invasion, Russia remains Turkey’s largest gas supplier.
Turkey negotiated “special prices” for Russian fuel last year, independent of the usual contract terms with Gazprom PJSC, Bayraktar said, without elaborating further.
Among others, Bayraktar said Russia’s state atomic energy company Rosatom is leading in the bid to build Turkey’s second nuclear power plant, planned to be constructed in the Black Sea province of Sinop.
Rosatom is already building the nation’s first nuclear power plant, Akkuyu, in southern Mersin province.
“This is the main reason why they’re naturally keen and in this sense, I and many others think they’re ahead,” said Bayraktar.
South Korea has also been in talks for the four-reactor facility, which could involve a public-private partnership, according to the minister. Licensing is expected to take two to three years.
Meanwhile, another plant is envisaged for the Thrace region, and Turkey has been talking with several countries, including Russia and China.
Officials have also expressed the country’s intention to invest in small modular reactors.
Turkey plans to triple its renewable energy capacity by 2053 as it strives to become a carbon-neutral economy.
It looks to increase electricity production capacity from nuclear energy to 20 gigawatts (GW), nearly four times what Akkuyu will generate once it becomes fully operational by 2028.
The plant will boast four reactors with a total installed capacity of 4,800 megawatts and will supply 10% of Turkey’s electricity consumption.
The initial reactor of the plant is almost complete and is planned to start producing electricity within less than a year.
Turkey also plans large-scale nuclear power plant projects in the Black Sea city of Sinop and Thrace and has been talking with several countries, including Russia and China, for the plants.
