“Decision on Naturalgas Prices Will be Made at Fabruary-end”

taner-yildizEnergy Minister Taner Yıldız revealed that the decision on whether an increase will be effected in the naturalgas price will be taken at the end of February. Energy Minister Taner Yıldız replied to questions concerning the current relevant agenda on the Haberturk TV news broadcast. Here are the major headings and highlights from Minister Yıldız’s statement.

Claims alleging that “North Iraqi petroleum inflows have dwindled”

“All of the sides involved in this domain have responsibilities. There is no doubt that all such sides are under obligation to fulfill their obligations and live up to their responsibilities. Unproduced petroleum cannot obviously be transported. We are transmitting exactly how much petroleum is extracted and produced. Even though it may entail one single barrel of petroleum, it is impossible to transport without the prior knowledge of the Baghdadi administration. This perception is deliberately attempted to be disseminated. Apparently, this is an untenable structure that undermines and damages the entire process. This petroleum belongs to Iraq, and it is Iraqi petroleum – regardless of where it is obtained. The quantity of the derived petroleum is definite and precisely known. We are not in a position to adopt a separate disposition or specifically act upon in connection with this. Furthermore, there will be no question of “secret or concealed” transactions or deals involving petroleum transfers. We have reached 400,000 barrels at Ceyhan. Indeed, there is a decrease but this is attributable to production. It is a matter that comes under the responsibility and jurisdiction of Baghdad, the Northern Iraqi regime. Turkey is fulfilling its pledges, honoring its guarantees and executing its commitments. What is important and crucial is to share this asset. And, for that matter, Iraq will share it among them.

A committee has already been established with respect to this pressing matter. They will convene, deliberate, undertake the necessary assessments and evaluations, and then share the pertinent decisions that they will procure with the general public.

 When will the Iraqi gas be received?

This is an extremely important topic for us. A portion of the gas that comes from Russia originates from Siberia. It covers a span of 4,000 kilometers, as this distance poses an underlying cost factor. The sole location that Turkey has closest proximity to such resources is Iraq.  One of the significant means of reducing and mitigating the costs is the Iraqi naturalgas. Whatever Iraqi decides, we will certainly have respect for it. We are pondering to consume within Turkey all of the gas that will be supplied to Turkey via this route because this is a low-cost gas.

When we look ahead, to the period of 2016/2017, the Iraqi naturalgas is anticipated to be equivalent almost to one-fifth of Turkey’s aggregate consumption. This is, needless to mention, a substantial and notable figure. Subsequently, reliance on Iran and Russia will undergo a decline. We are receiving naturalgas from five different countries, and petroleum from a dozen countries. Efforts and endeavors aimed at enhancing and diversifying Turkey’s natural resources are crucially important and vital.”

 Is the naturalgas price hike in the pipeline?

“We will disclose our decision to be valid and effective for the month of March at the end of February. It should be underlined that we have not unveiled any tariff and rate mark-up so far despite the marked increase encountered in our electricity costs.

We are meeting one-fourth of the electrical power that we consume from hydro sources. Scarcity of water and precipitation may not create and unleash a distress or adversity in energy production but we may unfortunately end up as generating electricity tagged with a higher cost input. God willing, we will have abundant rainfalls from now on, and it will eventually balance out our cost outcome.”