According to Bayraktar, the gas transit agreement between Russia and Ukraine expires on December 31, and Ukrainian authorities have already stated they do not intend to extend it. If the agreement is not renewed, Russian gas will be supplied to Europe through Turkish territory via the TurkStream pipeline, with an annual volume of 16 billion cubic meters.
Ukraine’s refusal to transit Russian gas could lead to higher gas prices in Europe. Turkey is actively working on diversifying its gas sources and securing additional supplies for Europe.
Ukrainian President Volodymyr Zelensky announced the decision not to extend the contract with Gazprom for gas transit, which expires at the end of 2024. Commenting on this decision, Russian presidential press secretary Dmitry Peskov noted that Russia has alternative supply routes to Europe through Turkey as part of the project to establish a gas hub in the country.
On July 16, 2024, Naftogaz confirmed that it would not negotiate with Gazprom to extend the contract for the transit of Russian gas to Europe through Ukraine’s gas transportation system.
Although still a net importer , Turkey is gradually positioning itself as a gas supplier to the EU, aiming to become a regional gas hub. In the first half of 2024, Turkey’s gas exports increased 7.5 times, reaching 822 million cubic meters, including 688 million cubic meters to Bulgaria and 133 million cubic meters to Hungary. The main suppliers of pipeline gas to Turkey are Russia, Azerbaijan, and Iran, while LNG supplies come from Algeria. Turkey is also exploring the possibility of importing gas from Turkmenistan through a swap arrangement with Iran.
In October 2022, Russia proposed the Turkish Gas Hub project, which envisions creating a platform for gas supplies and pricing at the EU border, providing an alternative to other price-setting centers in Europe.
The gas supplies for the hub would be secured by the capacities of existing Russian pipelines (TurkStream and Blue Stream), gas from other suppliers (Algeria, Qatar, Iran, Azerbaijan, Oman, Turkmenistan), and gas from Turkey’s Black Sea shelf fields. This would enable the supply of anonymous gas to Europe, preventing discrimination against Russian gas in the European market.
Initially, the plan is to create an electronic trading platform, but the project may expand as more gas suppliers join and storage capacities in Turkey are enhanced.
news.az