History of the Natural Gas Market

In 1986, BOTAŞ signed a 25-year gas purchase agreement with Soyuz gas export (USSR), which was the first step in the transportation and trade of natural gas in Turkey, and in 1987, the first natural gas imports were actually realized.

In 1988, an LNG purchase agreement was signed with Algeria to increase resource diversity and ensure security of supply, and Marmara Ereğlisi LNG Terminal was commissioned in 1994. In 1995, a 22-year LNG purchase agreement was signed with Nigeria.

As a new source of supply, a natural gas purchase agreement was signed with Iran in 1996 and became operational as an additional source in 2001. In 1997, a 25-year gas purchase agreement was signed with Russia to be supplied from the pipeline over the Black Sea (Blue Stream), which became operational in 2003. With this agreement, Turkey gained 4 different supply sources. In 1998, Turkey signed a 25-year natural gas purchase agreement with the Russian Federation from the Western Pipeline from which Turkey first imported natural gas.

As a new source of supply, a natural gas purchase agreement was signed with Iran in 1996 and became operational as an additional source in 2001. In 1997, a 25-year gas purchase agreement was signed with Russia to be supplied from the pipeline over the Black Sea (Blue Stream), which became operational in 2003. With this agreement, Turkey gained 4 different supply sources. In 1998, Turkey signed a 25-year natural gas purchase agreement with the Russian Federation from the Western Pipeline from which Turkey first imported natural gas.

With the publication of the law and the contributions of EMRA, the tender processes for urban natural gas distribution accelerated, and in 2004 BOTAŞ’s transmission network was opened to third-party access.

In 2005, the first contract transfer tender was held and in 2007 the first contract transfer agreement was signed. In 2007, 3rd party access to the transmission grid started and 4 bcm of contract transfer was realized between 2007 and 2009.

In 2007, BOTAŞ started the first natural gas exports to Greece.

As an additional source of supply, Egegaz Aliağa LNG terminal started imports in 2009. In the same year, EMRA issued a regulation on third party access to LNG terminals, which was approved and put into effect in 2010.

In 2011, BOTAŞ did not extend the 6 billion cubic meters per year gas purchase contract with Gazprom Export on the Western Line, a development that will significantly increase the share of the private sector in the natural gas market.