Turkey turns to coal to loosen Iran, Russia gas reliance

John McGarrity       Reuters

• Turkey relies to 70 pct on imports to meet energy demand

• Booming population need more electricity

• Domestic lignite to boost power production, reduce import needs

LONDON, (Reuters) - Turkey is turning to its own coal, worried about dependence on pricier gas from Iran and Russia, after a deal with a UAE company which will boost its coal-fired power capacity by two thirds.

Its biggest gas supplier is Russia's Gazprom, which accounts for around half of imports, but it is long-term supply from Iran that could pose the biggest concerns. Turkey might not be able to continue to ignore further tightening of international sanctions aimed at curtailing the Islamic Republic's nuclear programme.

Gas imports have also been disrupted as a result of attacks on Iranian and Azeri import pipelines by Kurdish separatists.

"In public, Turkey has tried to show it won't bow to U.S. pressure, but even if can still buy Iranian gas, it's unlikely to be able to increase imports from a country that is subject to strict embargoes," said Alex Jackson, an analyst with political risk consultants Menas Associates.

Iran supplies around 16 percent of Turkey's gas needs, followed by 15 percent from Azerbaijan, according to International Energy Agency (IEA) figures.

Ankara has signed a $12 billion deal with Abu Dhabi's TAQA to mine lignite coal and build up to 8,000 megawatt (MW) of new power plants by 2020.

Turkey Approves Russian Gas Plan

Jacob Gronholt - PEDERSEN       THE WALL STREET JOURNAL

MOSCOW—Russia secured approval from Turkey on Wednesday to build the South Stream gas pipeline across the Black Sea, removing the last major obstacle to proceed with a project that could increase Europe's dependence on Russian natural-gas supplies.

The move heats up the battle between Russia and the European Union over competing pipelines, especially the European Union-backed Nabucco project, and increases pressure on Ukraine to give Moscow control of its pipeline system.

Turkey's approval, given by Energy Minister Taner Tildiz during talks with Russian Prime Minister Vladimir Putin in Moscow on Wednesday, had been a stumbling point for Russia to proceed with the offshore part of the South Stream project.

Russian state gas giant OAO Gazprom ships most of its gas exports to Europe via Ukraine, but supply disruptions in recent years due to pricing disagreements between the two countries have led Russia to seek to bypass Ukraine and promote new pipelines such as South Stream.

Turkey’s Role in European Energy Security

Dr. Mehmet Efe Biresselioglu*   Natural Gas for Europe      

Ankara’s geography can help boost European energy security

An expert in European geopolitics in the Department of International Relations and the EU at Turkey’s Izmir University of Economics, Dr. Mehmet Efe Biresselioglu contended that there were some basic problems with European energy policy.

“The political reality of the European Union changes when it is faced with energy issues,” he explained. “The EU is divided into two different poles: there are the national decision making centers on one hand, and the EU institutions with powerful transnational political resources on the other. So basically in spite of the liberal inter-governmental setting, and fully integrated political policies, these two different poles mean that the EU is divided over a common energy policy.

“The main obstacle to progress in energy policy is basically the various preferences of the member states, all of which have their different domestic energy resources, different energy requirements and large, state-owned, monopolistic energy industries. All the states have different preferences.”

Turkey gives offshore prospecting permit to Gazprom for South Stream project

 RIA Novosti - Moscow

Turkey has permitted Russia's gas giant Gazprom to carry out offshore prospecting under the South Stream pipeline project, designed to carry gas to Europe under the Black Sea, Pavel Oderov, head of Gazprom's external economic activities department, said on Friday.

"We will start the offshore prospecting from May," Oderov said.

The offshore prospecting will be part of the procedure for getting Turkey's permission to build the pipeline, in which Germany's Wintershall, a unit of BASF, Italy's Eni and France's EdF will take part, Oderov said.
Gazprom is working on the project's technical and economic assessment and intends to announce the sum of investment as well as the final pipeline route in the summer.