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Page added on October 22, 2014
Turkey: Ukraine crisis to affect natural gas supply
Touching on the possibility that Turkey might encounter dilemmas regarding its natural gas supply due to the Ukrainian crisis, Yıldız said, “Over the past week, the EU, Russia and Ukraine have taken mutual steps and progress has been made in negotiations. We import half of our natural gas from Russia. So, there is a possibility that we may face issues in natural gas supply because of Ukraine. We need to increase geothermal [energy].”
Yıldız also states that the decrease in water resources has contributed adversely to the energy shortage and underlined the necessity to increase alternative energy resources. He said, “We should not object to everything. The largest amount of natural gas will come from Ukraine.”
In response to a question as to whether there will be a reduction in natural gas prices, Yıldız stated that natural gas prices in Turkey are indexed to the per barrel price of crude oil which is reflected in the past prices of the six to nine months . “Despite the latest price regulations, we are selling it for a price that is lower than we buy. Thus, BOTAŞ [Petroleum Pipeline Corporation] makes a loss of around TL 2 billion [$892 million]. We are already losing. Every reduction we receive will be used to make up for this loss. We are right in demanding a reduction, but we will see how much this reduction will be,” he added.
Yıldız also emphasized that neither Turkey, nor the Justice and Development Party (AKParty) government have plans of privatizing boron operations, stressing that they will remain under the supervision of the public.
Mentioning falling oil prices, Yıldız said that it has positive reflections on Turkey. “Oil prices have seen three reductions in a row. However, we see that oil prices have not dropped in the world, despite a 25 percent decline in the price of per barrel crude oil. If this fall continues for a year, our budgetary burden will be eased by 10 percent. I said that this was speculative when the price per barrel of oil hovered above $110 [TL 246.51]. We can say that the current price of oil, which hovers around $85-86, is positive for Turkey.”
Yıldız underscored that ISIS is an actor that has dramatically changed the dynamics in Northern Iraq. Answering a question of how the close energy cooperation that Turkey has established with the Kurdistan Regional Government (KRG) would be affected by these developments, Yıldız said, “ISIS has become an important factor that does not only threaten the stability of the KRG but also the entirety of Iraq. The recent situation in the region has affected our energy projects. ISIS poses troubles in terms of energy. We are trying to maintain deliveries. We are ready to deliver seven-times the amount of the currently delivered oil.”
7 Comments on "Turkey: Ukraine crisis to affect natural gas supply"
JuanP on Wed, 22nd Oct 2014 8:27 am
Ukraine is a failed state and will not make it as a single nation. I think Ukraine will break up like Yugoslavia in time. There will be at least four pieces there once this is over, maybe more.
Northwest Resident on Wed, 22nd Oct 2014 9:48 am
JuanP — That’s the prediction I made back when the whole Ukraine mess first started up. When you have different regions with different national identities who have all been forced to live together in the same “house” by greater powers, you have to expect that they’re all going to get sick of living with each other after a while and start trying to break out on their own. It is only natural. Especially with such hard economic times. The pressure is on, big time. That same scenario I expect to start playing out in different regions and countries around the world, Europe especially, as the economic waters come to a boil.
JuanP on Wed, 22nd Oct 2014 1:32 pm
NR, I agree.
Out of subject. The situation in Ukraine is critical at this moment and it is possible that the Kiev regime may start a new military attack before winter sets in. If they do attack the Donbass forces, i expect the Ukrainians to be trounced. The Kiev record so far is one of abject failure.
turningpoint on Wed, 22nd Oct 2014 5:33 pm
I see an ad on here that says,
“Dating Russians, Find My Next Love.”
I do like Slavic Women but what is this?
Maybe the Oil Drum should have tried that….
turningpoint on Wed, 22nd Oct 2014 5:42 pm
I think Kiev has learned it’s lesson. I think they know Russia will not allow them to pummel the Donbass region and that we and Europe will not stop Russia. We just continue to sanction them, for some reason, despite the fact that these sanctions are hurting the German economy, according to Angela Merkel, and eastern European countries in general. Not to mention, we’re going to need Russian tight oil some day.
I guess President Obama wants to stick it to Russia so badly, he doesn’t care about collateral damage.
I have know idea why gas prices are so low right now. Maybe it’s a combination of increased production from fracking (which requires a high price to be profitable), demand destruction, KSA charging less for a barrel of oil and speculators driving down the price (it can work both ways). However, I’ve noticed articles that mention countries that will be hammered by low oil prices and they never mention us.
I consider these sanctions pretty stupid.
Makati1 on Wed, 22nd Oct 2014 7:54 pm
turningpoint, The US has not EVER cared about ‘collateral damage’, even in their own country. I could site a very long list of occasions starting with WW1, including the ME and now the Ukraine, but I won’t. It is too obvious to those outside the ‘exceptional’ country. That is why the US needs one of these events to take place on US soil, caused by some other countries meddling, to wake up the sheeple.
Hitler had plans to bomb the East Coast and invade DC, but he did not have the resources to do it. Had the Russians not won that war and Hitler had taken their huge resources, the world would look different today and you and I might be speaking German.
Russia is still the ONLY country that can be totally independent of the world and that is not allowed by the Empire. It could also be the country that wins this war … and probably will be.
JuanP on Wed, 22nd Oct 2014 8:48 pm
turningpoint “I think Kiev has learned it’s lesson.”
I hope you are right, but I think you are completely wrong. Kiev has been buying time with this ceasefire while they rest, rearm, reorganize, and regroup in preparation for renewed all out war with the East. As soon as they are ready they will attack again. The ceasefire is extremely unlikely to last a year.