BOTAS says technical failure resolves that led reduction in gas flow

Turkey's state-owned Turkish Pipelines Corporation (BOTAŞ) stated on Wednesday that reduction in capacity of gas flow is only related to technical failure.

"To reduce gas flow to some natural gas plants by 50 percent has stemmed from increasing demands due to severe weather conditions. This reduction in gas amount has been done as a precaution," BOTAŞ explained. “There is no problem preventing the flow of natural gas flow from Iran to Turkey. The gas flow was decreased yesterday due to technical reasons for a short time."

Officials in BOTAŞ reportedly said that Iranian officials have been engaged in necessary work to ensure that volume of gas flow would go back to its normal level.

On his weekly press conference on Wednesday, Presidential spokesman İbrahim Kalın has confirmed that the technical problem has been resolved and the gas flow to Turkey from Iran is back its normal level.

Earlier reports said that Iran has reduced its daily flow of 30 million cubic meters of gas to Turkey by half, claiming its domestic consumption has increased due to severe weather conditions. Tehran's daily flow of 28 to 30 million cubic meters of gas to Turkey was decreased by 50 to 60 percent last night, and stood at 14 to 15 million cubic meters of gas, the reports said.

Iran's Mehr News Agency quoted Sadiq Akbarpour, terminal manager of natural gas exports to Turkey, as saying that Iran does not have sufficient technical potential to increase the capacity of gas flow to Turkey significantly. “Iran will adhere to the agreement it signed with Turkey to export 30 million square meters of gas on a daily basis for a period of 25 years," he said.

After circulating the reports into the media organisations, the national oil company BOTAŞ has rolled up its sleeves to prevent heating problems, which may arise from growing gas consumption, particularly in the eastern parts of the country due to severe winter storms. The energy authority has designed a special program to reconcile the balance between supply and demand for a period of 15 to 20 days at the first stage. According to this plan, BOTAŞ has demanded natural gas plants, run by build-operate and build-operate-transfer methods, to use fuel oil in one or two units of the plants.

Iran has gained a major position in Turkey's oil and gas imports. Tehran is Turkey's second main supplier of natural gas. Iran's share in Turkey's gas imports accounts for 18 percent. Turkey has received about six billion cubic meters of Iranian gas per year. The country's total consumption of natural gas climbed to 49 percent in 2014. Nineteen percent of natural gas is used for heating residential areas while 48 percent is used to produce electricty.

Tehran's decision to reduce the flow of gas was heard amid discussions in Turkey of whether or not Russia, known as Turkey's main supplier of natural gas, will halt the gas flow. The energy authority in Tehran was said to have retaliated against Turkey's downing of a Russian plane in Turkish airspace. Moscow and Tehran are two close allies who have stepped up coordination in Syria.

However, Aksa Energy, operating Turkey's first Biogas Plant since late 1990, announced on Wednesday that the capacity of gas flow to gas plants will be restricted in half. “BOTAŞ has notified that the capacity of gas flow to some giant natural gas plants was restricted by fifty percent as of 8 am on December 10, Thursday," Aksa Energy said in its statement to the Public Discloosure Platform (KAP). Aksa Energy, a subsidiary of Kazancı Holding, also said its Antalya-based plant will receive gas in half capacity while its plants in provinces of Manisa and Şanlıurfa will raise the capacity of gas flow.

Turkey's biggest concern is the possibiliy that Russia may reduce gas flow to Turkey under a similar guise. Turkey received 47 million cubic meters of gas from the Blue Stream -- a major trans-Black Sea pipeline carrying gas from Russia into Turkey -- and 42 million cubic meters of gas through the Transbalkan pipeline, known as the Western Line in Turkey. Russia is the largest gas supplier to Turkey. In other words, Turkey covers nearly half of its daily gas needs with gas from Russia.

Turkey has 200 million cubic meters of gas in its all gas supplies on a daily basis. Difficulties arise in meeting the demand because total consumption hits 230 million cubic meters during heavy winter season. Turkey currently imports gas from Russia, Iran and Azerbaijan. It has also signed a deal to purchase gas from Qatar during President Recep Tayyip Erdoğan's visit to Doha. Officials have also reportedly planned to supply gas from Turkmenistan and Kazakhstan, two Central Asian allies which have rich gas reserves. Kazakh and Turkmen gas might be transported to the European market through Turkey if Ankara reaches a consensus on this issue.