Turkey extended contracts for gas imports from Russia

Three Turkish gas companies, which account for almost 12% of the country’s annual demand, have extended the contract for the supply of gas with Gazprom, the ICIS agency reports.

Akfel Gaz, Enerco Enerji and Avrasya Gaz, part of the Akfel Commodities Turkey group, resumed imports of Russian gas in the last four days of 2021 and are expected to receive about 20 mcm per day.

Two market sources told ICIS that Enerco Enerji and Avrasya Gaz may have renewed their contracts with Gazprom by two years, which expired at the end of 2021. According to the initial documents, Enerji was going to import 2.5 bcm per year from Russia, and Avrasya Gaz – 0.5 bcm per year.

According to ICIS, now buyers will pay for gas at a hybrid price, 70% including indexation from the TTF index and 30% – pegging to the oil price with a nine-month lag.

Akfel Gaz, which has a long-term contract for 2.25 billion cubic meters. m until 2043, possibly also switched from 100% indexation for oil to the same hybrid formula, the agency admits.

ICIS also claims that the state-owned company BOTAS has extended its contract with Gazprom, which expired in 2021, for the supply via the Turkish Stream gas pipeline. The agency, relying on data from the national energy regulator EPDK on the reservation of gas transmission capacities, expects that in 2022 BOTAS will import 5.75 bcm of gas.

Gazprom supplied about 27 bcm of gas to Turkey in 2021, by 63% more than in 2020.