The GASWORLD journal about technical gases and cryogenic equipment published an article by Irina Mironova, associate employee of EUSP and teacher of the Energy Policy and Energy Transition in Eurasia (ENERPO) program, about the possibilities and prospects of forming a gas hub in Turkey.
In the article, the author talks about the meaning and functioning of different types of gas hubs and highlights the prerequisites for their formation:
Based on the experience of developing gas hubs in North America and the EU, we can identify several conditions necessary for the formation of a gas hub:
- Availability of a developed infrastructure for gas transportation within the country (interconnectors, LNG terminals) to minimize the risks of market monopolization. Gas storage facilities are also needed to help smooth out negative market conditions during periods of peak gas demand.
- A large number of market participants on both the demand and supply sides.
- Non-discriminatory access to infrastructure (LNG terminals or pipelines) for all market participants.
- In addition, the possibility of significant domestic production is desirable, which reduces the share of imports in the consumption structure.
Assessing the Turkish gas industry according to these criteria, Irina comes to the conclusion that the formation of a gas hub in the country is quite possible and desirable for the country itself.
It is generally accepted that the idea of a gas hub in Turkey is being promoted by Russia, and only Russia needs such a hub. Indeed, the opportunity to supply gas to the Turkish hub can, under certain circumstances, allow Russia to increase the volume of gas exports to the west. However, the development of natural gas trade in accordance with the principles of a competitive market is of interest, first of all, to Turkey itself, which has been striving to join the EU for decades. If the principles of market functioning comply with EU requirements, this will significantly facilitate integration. Therefore, over the past years, the Republic of Turkey has taken systematic steps to introduce such practices into the work of the country’s gas market.
The full Russian text of the article is in the online issue No. 94 of the GASWORLD journal.
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