Natural Gas


Natural gas transport and trade throughout the country started in 1987 after completion of the pipe line (western line) constructed under the context of the Natural Gas Purchase Agreement signed by and between BOTAŞ and Gaz Export (USSR -Russian Federation) on 14 February 1986. Marmara Ereğli LNG Import Terminal, which was constructed under of LNG Purchase Agreement executed with Algeria on 14 April 1988, has been serving as the second supply point since 1994.

Meanwhile, Statutory Decree on Usage of Natural Gas dated February 9, 1990 and numbered 397 has authorized BOTAŞ to import, distribute (urban distribution excluded), sell and price natural gas.

In order to increase the supply sources and to ensure supply security, LNG Purchase Agreement was signed with Nigeria on November 9, 1995, and a Natural Gas Purchase Agreement was signed with Iran on August 8, 1996. Third supply point was added to our Natural Transmission Network when we started to purchase Iranian natural gas in 2001.

In order to meet the increasing domestic consumption, a new Natural Gas Purchase Agreement was signed with Russian Federation on December 15, 1997. The pipe line, constructed under the new agreement, which passes underneath the Black Sea and reaches the northern part of our country (Blue Stream - Black Sea line) has been connected to our National Transmission Network around Ankara. Natural gas purchase from our fourth supply point Black Sea line has started in 2003.

As domestic consumption accelerated, another Natural Gas Purchase Agreement has been signed with Russian Federation on 18 February 1998, also for inflow through the western line, the first pipe line of natural gas inflow to Turkey.

Egegaz LNG Terminal in Aliağa, which is the fifth supply point of our National Transmission Network, was connected to the network in 2006.

Natural gas purchase from the sixth supply point, entering from the northeast of Turkey, which was constructed within the context of the Natural Gas Purchase Agreement signed with Azerbaijan on March 12, 2001, has started in 2007. The pipe line for the first natural gas export from our country to Greece under the same agreement was completed and launched in 2007, natural gas export has started.

Akçakoca Natural Gas field explored by and exploited by TPAO, and TPAO's Northern Marmara in Silivri and Değirmenköy underground storage facilities were connected to the National Transmission Network in 2007.

First urban consumption of natural gas was started by Ankara municipality's establishment EGO, which was found for conducting urban distribution and marketing in Ankara, in August 1988. Natural gas consumption in Istanbul has started in 1992 as a result of distribution and marketing activities conducted by Istanbul municipality's establishment IGDAŞ. İZGAZ, which is also a municipal establishment, has started urban distribution in İzmit in 1996. Urban consumption of natural gas has started in Bursa in 1992, and in Eskişehir in 1996, urban distribution of both cities were conducted by BOTAŞ. Gas distribution in Bursa and Eskişehir, which were established and initiated by BOTAŞ, were privatized by Privatization Administration within the context of Provisional article 3 of the Law number 4646.

Energy Market Regulatory Authority (EMRA - EPDK) which has started activities in 19 November 2001, has completed urban natural gas distribution tenders of 55 new regions since 2003, thus natural gas penetrated most parts of the country. Our domestic natural gas consumption is 35,1 billion m3 as of 2009.


Statutory decree number 397 on Usage of Natural Gas, which was put in effect upon publication on the Official Gazette dated February 09, 1990 and numbered 20428 and, as resolved by the Council of Ministers on the basis of the authorized granted by the Law dated 10.06.1987 with number 3378, has authorized BOTAŞ on import, sale, pricing and domestic distribution of natural gas (including liquidated form).

However, in line with the goals of settling free market economy principles and removing monopolies as a requirement of liberal economy, Statutory decree number 397 has been abrogated in order to ensure full competition in natural gas market; and issues on transmission, import, distribution and sale of natural gas were set by Natural Gas Market Law number 4646 as drafted by the Ministry of Energy and Natural Resources and adopted by the Turkish Grand National Assembly on 18 April 2001, and put in effect by publication on the Official Gazette dated 02.05.2001 number 24390.

The goal of the said law is to deregulate natural gas market and to create a financially sound, stable and transparent natural gas market, and to ensure independent regulation and supervision of such market, in order to offer natural gas to consumers in quality, continuous, cheap and competitive framework, without damage to the environment.

Tenders on Transfer Natural Gas Purchase and Sale Agreements (Import Agreements), as announced in the Official Gazette dated 04.11.2004 number 25633, were cancelled without taking bids, due to entry into force of the Law on Amendment of Natural Gas Market Law (Law No: 5367) by publication on the Official Gazette dated 25.06.2005 number 25856. Thereafter, the same were re-announced by publication on the Official Gazette dated 22 September 2005 number 25944.

With the tender held on 30.11.2005, private sector companies were entitled to take over 4 billion cm3/year part of the Natural Gas Purchase and Sale Agreement signed by and between BOTAŞ and GAZEXPORT on 18.02.1998. Transfer process of 500 million cm3/year natural gas which Avrasya Gaz AŞ was entitled to take over under such tender, has started upon the delivery of the collateral to BOTAŞ in accordance with the tender specifications and the Deed Of Assignment signed on 31.10.2007. After obtaining License from Energy Market Regulatory Authority and the Competition Authority applications, our company has started natural gas import of 500.000.000 cm3/year from Malkoçlar locality at Bulgaria border as of April 1, 2009.