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Istanbul: Turkey is seeking to diversify its natural gas imports as increased tensions with its main supplier Russia has raised fears of a shortage in winter.
Moscow has established a reputation as a reliable supplier to Ankara by increasing gas supplies to Turkey when Iran cuts its exports to meet domestic demand, a near annual occurrence.
But fears about Russia's reliability as a partner have risen since a recent trade row that began when Russian customs officials curbed Turkish exports. Moscow has offered no explanation and Turkey has since responded in turn.
"Turkey is in a sort of a bind, because it is vulnerable to Russia for more than 60 per cent of its natural gas and 50 per cent of its oil. And it is vulnerable because we see there are no alternatives," said Wolfango Piccoli, analyst at Eurasiagroup.
Turkey, a member of the North Atlantic Treaty Organisation (Nato), has been in a difficult situation since Russia's intervention in Georgia last month, trying to maintain good relations with its biggest trade partner and energy supplier while upholding its Nato obligations.
Russia supplies more than 60 per cent of Turkey's natural gas needs through two pipelines, but raises its exports significantly when Turkey's second largest gas supplier Iran turns off its exports.
Turkey regularly experiences problems with Iran, where poor infrastructure leads to cuts during winter. Most recently, Iran had to stop exports this year to meet domestic demand after Turkmenistan halted supplies during a pricing disagreement.
Turkish energy firms, including state-owned pipe-line company Botas, have applied to Turkey's energy markets regulator for lic-ences to buy liquefied natural gas from the spot market in case Ankara finds itself in a tight spot during the winter months.
Spot market
"Turkey makes up for deficits in natural gas supply from Iran by importing more from Russia. We are aiming at meeting demand by importing from the spot LNG market in case there are any problems experienced with Russia," said a senior level official at Botas.
Turkey has also asked Azerbaijan to increase is natural gas imports to Turkey after the second phase of the Azeri Shakh-Deniz project begins, and Hilmi Guler is flying on Monday to Baku, where he is expected to repeat his request.
Other side: Seeking to please
Some analysts still see Russia trying to make Turkey happy in the energy sector as Moscow's largest state-owned energy company Gazprom is eager to get into Turkey's downstream energy sector.
Turkey is holding a number of natural gas distribution grid sell-offs during Turkey's energy markets liberalisation process, which Gazprom has expressed interest in. Turkish energy companies said they doubt Russia will put its energy relations with Turkey at risk, but said they fear what such a move could do to industry during winter months.
- Reuters
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