By Janet Ekstract
ISTANBUL-A 10-year natural gas agreement between Turkiye and Oman was signed on Monday, according to Energy and Natural Resources Minister Fatih Donmez. Türkiye has signed a natural gas purchase agreement with Oman that will be valid for the next 10 years, Energy and Natural Resources Minister Fatih Dönmez announced Monday. A Turkish delegation from the country’s state energy firm BOTAS was in Oman to sign the agreement that includes Turkiye purchasing annually 1.4 billion cubic meters (bcm) of gas from Oman with an option to extend, Domez told attendees at the Summit of The Century of Turkiye in Istanbul.
The agreement with Oman also includes an opportunity to be extended further if needed, Dönmez told the Summit of Century of Türkiye in Energy. As Donmez commented: “At a time when the world, especially Europe is suffering from gas supply problems, Turkiye is taking all steps to become a gas trade center.” The fact is that the Turkish nation is virtually dependent on imports for its energy requirements with domestic demand having increased since the pandemic. Turkiye’s major gas imports come from Russia, Azerbaijan and Iran with liquified natural gas (LNG) from Qatar, the United States, Nigeria and Algeria.
In the meantime, natural gas discovered in Turkiye’s Black Sea will start production by the end of March. At least 710 bcm of natural gas has been discovered since August 2020 with a market value of $1 trillion USD. Current reserves, Donmez said are adequate to meet a 30-year demand in the country with Turkiye set to expand its hydrocarbon exploration. Donmez said a quarter of the country’s gas needs at full capacity production can be met from these gas reserves.