Turkey’s Energy Minister says no price increase expected for natural gas this winter

Turkey’s Energy Minister, Alparslan Bayraktar, made detailed statements regarding energy subsidies, regulations, and projects in the country. He emphasized that no natural gas price increase was expected this winter and that there would be no price hikes in the first quarter.

Key points from the Minister’s statements are as follows:

Natural Gas and Electricity Subsidies:
Bayraktar mentioned that significant subsidies have been provided for electricity and natural gas in 2023 and 2024, with 275 billion TL in subsidies in 2023 and 400 billion TL in 2024. Additionally, 230 billion TL has been allocated for electricity and over 200 billion TL for natural gas in the 2024 budget. He confirmed that there will be no price increase for natural gas this winter, and no changes are expected for the first quarter.

New Regulations for Electricity and Natural Gas:
Under the new regulations, subscribers consuming over 417 kWh of electricity per month will no longer benefit from subsidies. This change will affect only 3% of the total 42 million subscribers. For those with higher consumption, bills will increase according to the new tariff, with increases of up to 93% for 417 kWh users and 89% for 450 kWh users. However, 40 million out of 42 million subscribers will continue to benefit from the subsidies. For natural gas, a 65% subsidy applies to all subscribers.

Slovakia and Gas Supply:
Bayraktar announced that, following the cessation of Russian gas flows to Ukraine, Turkey will hold discussions with Slovakia to ensure energy security. He also stated that efforts to bring Turkmenistan gas to Turkey are in the final stages, although there are challenges regarding the Caspian transition, with alternative solutions under consideration.

Black Sea Gas and Oil Production:
Bayraktar highlighted that daily production from the Sakarya Gas Field in the Black Sea has reached 7 million cubic meters, with expectations to increase to 20 million cubic meters by 2025. He also mentioned that oil production in the Gabar region has surpassed 75,000 barrels and is expected to rise further.

Electricity and Natural Gas Exports to Syria:
Bayraktar announced a project to export electricity to northern Syria, with an initial 800 MW capacity. He stated that rebuilding the transmission line to Aleppo would take 5-6 months and added that a 50-60 km natural gas pipeline would be constructed to provide gas to Syria.

Akkuyu Nuclear Power Plant and Other Projects:
Regarding the Akkuyu Nuclear Power Plant, Bayraktar confirmed that electricity production tests will begin this year from the first reactor, marking a historic moment for Turkey. He also mentioned that South Korea and Russia have shown interest in the Sinop Nuclear Power Plant, and talks are underway with China regarding the Trakya nuclear project.

Renewable Energy Investments and YEKA Projects:
Bayraktar noted that renewable energy investments, particularly in solar power, would accelerate, with 800 MW of solar capacity set for the next YEKA (Renewable Energy Resource Areas) tender. He pointed out the high demand for wind energy and the continued decrease in electricity prices. He emphasized that renewable energy projects help reduce energy imports and Turkey’s dependence on foreign energy.

In summary, Bayraktar’s statements outline broad projects aimed at increasing Turkey’s energy security, supporting domestic production, and reducing energy imports.