Natural gas supplies over a quarter of Turkey's energy. The country consumes 50 to 60 billion cubic metres of natural gas each year, nearly all of which is imported. A large gas field in the Black Sea started production in 2023.
After the 2022 Russian invasion of Ukraine several European countries stopped buying Russian oil or gas, but Turkey's relations with Russia are good enough that it continues to buy both. Turkey receives much gas from Russia, which is cheaper than LNG. Households buy the most gas, followed by industry and power stations. Over 80% of the population has access to gas, and it supplies half the country's heating requirements. As the state-owned oil and gas wholesaler BOTAŞ has 80% of the gas market, the government can and does subsidize residential and industrial gas consumers. All industrial and commercial customers, and households using more than a certain amount of gas, can switch suppliers.
History
The General Directorate of Mineral Research and Exploration was formed in 1935, but very little gas was found. The most efficient way of importing gas is by pipeline from nearby countries, and the first imports were from Russia in 1986, followed by Iran. However, the pipeline from Azerbaijan only started transferring gas in 2007.
Liquefied natural gas (LNG) was first imported from Algeria in 1994 and from Nigeria in 1999. In the early 21st century gas consumption increased. Between 2000 and 2020 the share of imported energy increased from just over 50% to 70%.
In 2019, the European Council objected to Turkish drilling in the eastern Mediterranean. In 2022, a gas shutoff by Iran caused problems for industry. Some analysts say that Turkey does not have enough gas storage or alternative supplies to resist pressure, and that when Russia says it is closing a gas pipeline for maintenance (for example a 10-day shutdown of Bluestream in 2022 at 2 days notice) this is sometimes intended to apply political pressure. In 2022, the increase in global gas prices increased the current account deficit as more gas was bought on the spot market.
Geopolitics Unlike several European countries, which stopped buying or were cut off from Russian oil or gas, after the 2022 Russian invasion of Ukraine, relations with Russia are such that Turkey continues to buy both. China and Turkey import the most gas from Russia. It is said to sometimes be difficult for media in Turkey to report fully on energy geopolitics. President Erdoğan said in 2022 that Turkey could not join sanctions on Russia because of import dependency.
Turkey's state-owned oil and gas exploration and production company TPAO hopes to explore for oil and gas in Libyan waters: a memorandum of understanding was agreed with Libya but later suspended by a Libyan court. Turkey opposes some gas exploration by the Republic of Cyprus because of the Cyprus–Turkey maritime zones dispute.
The Northern Iraq two rival parties Patriotic Union of Kurdistan (PUK) and Kurdistan Democratic Party (KDP) would have to agree for a new pipeline to take the shortest route, as it would come from wells in the part of the Kurdistan Region controlled by the PUK and pass through the part controlled by the KDP. In 2022 the Islamic Revolutionary Guard Corps used missiles to strike a house belonging to Baz Karim Barzanji, a businessman working on a new pipeline, reportedly because he had met American and Israeli officials there.
Impact and future
The largest source of greenhouse gas emissions by Turkey is coal power, which emits about 1000 grams of the greenhouse gas carbon dioxide for every kilowatt-hour of electricity generated. To generate the same amount of electricity gas emits less than coal, (371g in 2020), but far more than solar at 30g to 60g. When gas is produced in Russia or Turkmenistan, however, methane leaks release a greenhouse gas. But, as the international greenhouse gas inventory is based on where it is produced, this is accounted for in Russia's greenhouse gas emissions not Turkey's.
Turkey intends to increase the share of renewables and nuclear power in the national energy mix. According to a May 2022 report from thinktank Ember, solar and wind saved 7 billion US dollars on gas imports in the preceding 12 months. Some distribution companies are testing mixing up to 20% hydrogen with natural gas, so that eventually some of the gas distributed would be green hydrogen.
Earthquakes can be a danger to pipelines. In neighbouring Iran electrification, for example with heat pumps, away from gas has been suggested to improve earthquake resilience.
Supply and demand
Supply There are many sources of supply in the region and enough LNG import capacity in the country.
In 2020 Fatih, one of five drillships belonging to state-owned oil and gas company TPAO, discovered the Sakarya Gas Field under the Black Sea near where Romania has also found gas. Before 2023, when production from this sweet gas field in the Black Sea started, almost all natural gas consumed in Turkey was imported. South Akcakoca Sub-Basin (SASB) is a small gas field also in the Black Sea. As well as drillships there are 2 seismic ships. Turkish Black Sea reserves are estimated at a trillion cubic metres: gas will be piped to Filyos for processing to make it suitable for the gas grid, with peak production of 40 billion cubic metres (bcm) targeted for 2026. Turkish Black Sea gas is expected to eventually meet almost a third of national gas demand, with 15 billion cubic metres (bcm) annually by 2030. According to some commentators, with this discovery, the Aegean dispute with Greece over exploratory drilling is now unnecessary.
Almost half of the country's gas is imported from Russia. In 2021 contracts with Russian energy company Gazprom were renewed and linked to the EU price; they included a four-year deal to the end of 2025 for 5.75 bcm a year through TurkStream (which has total capacity 31.5 bcm). The contract price has not been published but was reported (in 2022 by media opposed to the Turkish ruling parties) to be based on 70% of the LNG spot market price plus the Brent Crude oil price: this is much more expensive than the Blue Stream gas. Turkey's pipeline contracts with Russia were extended and are now due to expire at the end of 2026.
US sanctions on Iran do not apply to pipeline imports of gas. LNG import share varies but typically about a quarter of gas imports are LNG. Total spot import was 6.9 bcm in 2021: spot can also be imported by pipeline. Total entry capacity in 2021 was 362 mcm/day. BOTAŞ would like to import from Northern Iraq, but completing the Iraqi part of the pipeline is mired in disputes between the Iraq central government and Kurdistan Regional Government. However some gas in Iraq is wasted by flaring so Iraq would benefit by selling that. Turkey suspects winter cuts in long-term low-price contracted supply from Iran are not technical faults but Iran keeping the gas for its own use.
In 2021 a contract was agreed with Azerbaijan to import 11 bcm more per year until the end of 2024. TPAO has a 19% share in Shah Deniz 1. Fracking shale gas might help with energy security. Gas supply from Turkmenistan has been planned for decades but a pipeline under the Caspian Sea has not yet been built, partly due to lack of an agreement between Turkmenistan and Azerbaijan. Instead in 2025 Turkey bought over 1 bcma of Turkmen gas via a swap agreement with Iran, as there is spare pipeline capacity. However the maximum possible is said (by backers of a rival route between at sea installations) to be only 3 bcma. LNG is imported from several countries including Egypt, Algeria, Oman, and the United States.
Demand Over 80% of the population, and all provinces in Turkey, have access to natural gas, which supplies half of household final energy. In 2021 consumption share included 27% households, 35% electricity production, 29% industry and 8% service sector. The Energy Ministry expects demand for gas to increase slightly to 2030, but its share of primary energy consumption to fall slightly to less than a quarter. In some years electricity generation in Turkey burns half the gas, but this varies greatly depending on whether there is enough rain to produce hydroelectricity; therefore, when it rains, Turkey burns less gas. Peak demand is typically in mid-winter, averaging almost 300 million cubic metres (mcm) each day, and the Chamber of Engineers said in 2022 that there was not enough storage. There are 72 distribution zones and 18 million households are supplied with gas. About half of residential energy demand is met by gas. The International Energy Agency predicted in 2021 that use for electricity generation will decline. However the national energy plan published in January 2023 forecasts over 10 GW more gas power may be needed by 2035 to balance variable renewable energy and for energy security. All industrial and commercial consumers, and households buying over 75 thousand cubic-meters a year can switch suppliers.
Transport, processing and storage
There are many gas pipelines, and it may not be possible for Europeans to determine the origin of the gas they buy from Turkey, which could be a problem for EU countries as they are not likely to be able to legally buy Russian pipeline gas from 2027. Major gas pipelines (with capacity in bcm) are: +←Out to westThrough←In from east←20Trans-BalkanTrans-Anatolian16TurkStream3216Balkan StreamBlue Stream1610Trans AdriaticSouth Caucasus24Tabriz Ankara14
Gas from Russia comes via the Blue Stream and TurkStream pipelines; and from Iran via the Tabriz–Ankara pipeline. Azerbaijan normally supplies Turkey through the South Caucasus Pipeline. Its gas flows onward through the Trans-Anatolian gas pipeline (TANAP) supplying Turkey and some continues across the Greek border into the Trans Adriatic Pipeline.
The Tabriz–Ankara pipeline is a natural gas pipeline, which runs from Tabriz in northwestern Iran to Ankara in Turkey. Blue Stream, a major trans-Black Sea pipeline, has been delivering natural gas from Russia to Turkey since 2003. The Southern Gas Corridor includes the Shah Deniz 2 gas field, the South Caucasus pipeline, TANAP, and the Trans Adriatic Pipeline: TANAP is being expanded to 31 bcm per year. In Erzurum, the South Caucasus Pipeline, which was commissioned in 2006, is linked to the Iran-Turkey pipeline. In 2022 Turkey's transit pipeline had 3 to 5 bcm spare capacity. As gas imports cost $12 to $15 billion per year and the lira is weak; they are a significant part of the import bill. Turkstream has about 60% spare capacity as of 2022.
LNG can transit to Bulgaria, but there have been complaints that the deal is against EU free market rules. Energy analysts doubt that Turkey will ever become a major gas transit country, and expect only Azeri gas transit to be significant. However a few European countries, such as Serbia and Hungary, import Russian gas via Turkstream. In 2021 Hungary's MVM Group and Gazprom signed a 15-year contract for 3.5 bcm to be supplied via Turk Stream and the Transbalkans pipeline, and in 2022 Hungary agreed 0.7 bcm per year more gas from Russia via Turk Stream. In 2022 about 2 bcm from Turkstream was sent to Romania through the Trans-Balkan pipeline, and exports to Moldova are starting in 2023. Export to Ukraine through the Transbalkan has been technically possible since 2022, and has been discussed between the 2 governments, although Ukraine may be able to produce enough gas for its own needs. The Turkey Bulgaria interconnector at 3.5 bcm a year may become a bottleneck.