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BOTAŞ – TURKEY

Network Principles, International Integration and Opportunities

H. Hakan ÜNALCafer EMİNOĞLU

BOTAŞ – Gas Transmission Management

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Content

Introducing BOTAŞ Overview - History

BOTAŞ Network System

Internal Developments

Principles of BOTAS Transmission Network Operation Regulations Overview

Turkish Natural Gas Market and the Liberalization process

Tariffs

The Integration of Turkish Natural Gas Transmission System to the European and Mediterranean Network System

Physical Connections – Exit /Entry Points

International Projects

EU – Integration Process

Re-export Possibilities in Natural Gas Sector in Turkey Real Opportunities

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BOTAŞ – Overview / History

Established in1974. Purpose: Transportation of Iraqi

crude oil

1987 : Expansion of activity-field: transportation and

trade of Natural gas ->trade company

2001: BOTAŞ’s monopoly rights on natural gas import,

distribution, sales and pricing were abolished by the

Natural Gas Market Law

BOTAŞ is still major market player

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BOTAŞ TRANSMISSION NETWORK OPERATION PRINCIPLES

BOTAŞ Network Code is in force since 1st September, 2004.

Five revisions

Account Separation for trade, transmission and storage

July 2007: First shipper

After Transfer Entry – Exit Point regulation -> rapid increase of

the Shipper – Number

Today: 20 Shippers – 5 Importers

Transmited volume: Botaş - > 85%

20 Shippers - > 15 % (expected to be 25-30 % in a short time)

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Transported Amount - Private Sektor /NBP Trade

0

1.000.000.000

2.000.000.000

3.000.000.000

4.000.000.000

5.000.000.000

6.000.000.000

7.000.000.000

1 July-31

December

2007

2008 2009 2010 1 January-

31 August

2011

National Balancing Point

Private Sector total exit Amount

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BOTAŞ : STRATEGIC GOALS

Caspian and Middle East -> Turkey-> Europe

Effective role in the oil and natural gas market

Contributing to the creation of liberalized market

conditions

Supplying energy at world level cost

Building strategic co-operations

Security – environment – society – efficiency

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The length of BOTAŞ Natural GasTransmission Network

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2002 YILI VE ÖNCESĠ GAZ ARZI SAĞLANAN ĠLLER (9 ĠL)

2003-2004-2005-2006 YILLARINDA GAZ ARZI SAĞL. ĠLLER (34 ĠL)2007 YILINDA GAZ ARZI SAĞLANACAK ĠLLER (16 ĠL)

2008 YILINDA GAZ ARZI SAĞLANACAK ĠLLER (8 ĠL)

Provinces Recieving Natural Gas in 2002

KIRKLARELĠ

ĠSTANBUL

KOCAELĠ

YALOVA

BURSA BĠLECĠK

ESKĠġEHĠR

SAKARYABOLU

KARABÜK

ANKARA

KONYA

KIRIKKALE

AKSARAY

KIRġEHĠR

NEVġEHĠR

NĠĞDE

ADANA

HATAY

KĠLĠS

GAZĠANTEP

DÜZCE

BARTIN KASTAMONUSĠNOP

ÇANKIRI

ÇORUM

SAMSUN

AMASYA

ZONGULDAK

TOKAT

SĠVAS

YOZGAT

OSMANĠYE

MALATYA

ADIYAMAN

DĠYARBAKIR

ġANLIURFA

ĠÇEL

KAHRAMANMARAġ

ELAZIĞ

MUġ

TUNCELĠBĠNGÖL

BATMAN

SĠĠRT

ġIRNAKHAKKARĠ

VAN

ERZĠNCAN

ERZURUM

KARS

AĞRI

IĞDIR

ARDAHANARTVĠN

RĠZE

BAYBURT

TRABZON

GÜMÜġHANE

GĠRESUNORDU

KAYSERĠBĠTLĠS

MARDĠNKARAMAN

ANTALYA

BURDUR

ISPARTA

AFYONUġAK

DENĠZLĠ

MUĞLA

AYDIN

EDĠRNETEKĠRDAĞ

ÇANAKKALE

BALIKESĠR

MANĠSA

ĠZMĠR

KÜTAHYA

End of 2002:9 Provinces

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KIRKLARELĠ

2006

ĠSTANBUL

1989KOCAELĠ

1989YALOVA

1989

BURSA

1996BĠLECĠK

2003

ESKĠġEHĠR

1995

SAKARYA

2002 BOLU

2008

KARABÜK

2008

ANKARA

1988

KONYA

2003

KIRIKKALE

2003

AKSARAY

2003

KIRġEHĠR

2003

NEVġEHĠR

2008

NĠĞDE

2003

ADANA

2005

HATAY

2011

KĠLĠS2011

GAZĠANTEP

2005

DÜZCE

1996

BARTIN

2009KASTAMONU

2007

SĠNOP

2012

ÇANKIRI

2007

ÇORUM

2003

SAMSUN

2003

AMASYA

2008

ZONGULDAK

2009

TOKAT

2008

SĠVAS

2003

YOZGAT

2004

OSMANĠYE

2005

MALATYA

2005

ADIYAMAN

2006

DĠYARBAKIR

2007

ġANLIURFA

2007

ĠÇEL

2005

KAHRAMANMARAġ

2005

ELAZIĞ

2007

MUġ

2012

TUNCELĠ

2012BĠNGÖL

2012

BATMAN

2011

SĠĠRT

2011

ġIRNAK

2012

HAKKARĠ2012

VAN

2007

ERZĠNCAN

2008

ERZURUM

2003

KARS

2006

AĞRI

2006

IĞDIR

2009

ARDAHAN

2006

ARTVĠN

2012

RĠZE

2008

BAYBURT

2006

TRABZON

2008

GÜMÜġHANE

2008

GĠRESUN

2010

ORDU

2007

KAYSERĠ

2003

BĠTLĠS

2012

MARDĠN

2012KARAMAN

2003ANTALYA

2005

BURDUR

2005

ISPARTA

2005

AFYON

2005UġAK

2003

DENĠZLĠ

2005

MUĞLA

2011

AYDIN

2007

EDĠRNE

2007

TEKĠRDAĞ

2007

ÇANAKKALE

1996BALIKESĠR

2003

MANĠSA

2003ĠZMĠR

2003

KÜTAHYA

2003

Provinces Recieving Natural Gas in 2011Mayıs 2011 itibarıyla

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BOTAŞ -NATURAL GAS PROCUREMENT BY YEARS(Milyon

Sm3)

5131.159

3.0493.301

4.028 4.3854.8915.286

6.7427.904

9.70710.042

12.325

14.53115.866

17.095

20.822

21.798

26.736

30.307

35.873

38.120

33.068

31.917

16.537

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2011 NATURAL GAS SUPPLY SOURCES - TURKEY

LNG MARMARA

10%

LNG ALİAĞA

3%

İRAN

18%

TPAO A.

1%

Azerbaijan

9%

TPAO K.

4%TEMİ

0%Russia- West

27%

Russia Blue S.

28%

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2011 NATURAL GAS CONSUMPTION - TURKEY

TPAO

STORAGE

3%

INTR.

CONSUMPT.

0%GREECE

2%HOUSING

23%

E.Ü.A.Ş

9%

B.O

14%

B.O.Ts

4%INDUSTRY

44%

ANOTHER

ELECT.

PRODUCT. C.

1%

Botaş Transmission Tariffs

• Revenue cap method

• Tariff applied in non-discriminatory manner

• Capacity charge and service charge

• Possibility to determine transit transmission

tariffs

•Tariffs pertaining to dispatch, system balancing,

interruption balancing and service interruption

charges14

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Integration to the European and Mediterranean Network System

Physical Connections – Exit /Entry Points

Hakan beyin Altan Beye verdiği harita buraya…………………….

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WORLD’S 2ND LARGEST NATURAL GAS MARKET

WORLD’S LARGEST OIL

AND GAS RESOURCES

NATURAL TRANSIT ROUTE

Turkey as a Natural Transit Country

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International Projects Turkey- Greece-Italy Natural Gas Pipeline Project

Transcaspian Turkmenistan – Turkey - Europe Natural Gas

Egypt - Turkey Natural Gas Pipeline Project

Iraq - Turkey Gas Pipeline Project (Itgep Project)

Nabucco Natural Gas Pipeline Project

Transit Of Shah Deniz II Gas

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ITGI

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TRANSCASPIAN TURKMENISTAN-TURKEY-EUROPE NATURAL GAS PIPELINE PROJECT

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EGYPT-TURKEY NATURAL GAS PIPELINE PROJECT

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50

3.9

6.5

30-35

60-70

2-7

11-16

bcm/yıl

ihracat

H

.

IRAK – TURKEY PIPELINE PROJECT : 11-18 bcm/year

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Shah Deniz II Transit Agreement

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EU – Integration Process

Natural Gas Market Law: Enacted in 2001

The aim: to liberalize the market and encourage privatization and competition

Regulation of Natural Gas Market by the Energy Market Regulatory Authority

licenses from EMRA for gas transmission, export, import, wholesale, distribution and storage

BOTAŞ -> of long-term gas supply agreements to the

private sector

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Liberalization steps / EU Integration

Account Separation -> Realised

Third Party Access (2007) -> Realised

Legal Unbundling -> Not realized

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Comparison:REGULATION (EC) No 713/2009 -

BOTAŞ Network Code

Absence of Transit Regulation for Natural Gas

Tariff requirments

services on a non-discriminatory basis - firm and interruptible third-party

access services

long and short-term services

capacity-allocation mechanisms

daily capacity booking and capacity transfer mechanisms

Balancing Rules and Imbalance Charges

Re-export Possibilities in Natural Gas Market in Turkey

Re-export of imported Gas / Export of in

Turkey produced Gas

Three important conditions:

Gas Sale Agreements

Export licence

Technical capacity of Transmission

company

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THANK YOU

FOR YOUR ATTENTION

H. Hakan ÜNALCafer EMİNOĞLU

BOTAŞ – Gas Transmission Management