ISTANBUL (Reuters) - The United States has sanctioned Turkey’s energy ministry in response to the Turkish cross-border offensive in northeast Syria, raising questions about the impact on the country’s wider energy sector.
Two Turkish state companies are affiliated with the ministry. BOTAS operates Turkish gas infrastructure and is party to gas import contracts. TPAO is the local oil producer and operates an international infrastructure.
Turk Petrolleri Anonim Ortakligi (TPAO), the national oil company, is owned by the Turkish Treasury and managed by the Energy Ministry.
The company owns and operates two hydrocarbon drilling ships (Fatih and Yavuz) currently around Cyprus as well as two seismic survey ships for hydrocarbon exploration work.
Through partnerships and joint ventures TPAO does exploration and extraction work in Azerbaijan (Shah Deniz, ACG, BTC, SCP, ALOV), Russia (Baytugan), Iraq (Mansuria, Badra, Missan, Siba) and Afghanistan (Mazari Sharif). The company also produced 13.5 million barrels of oil and 405 million m3 gas from local fields last year.
The company invested $863 million in international and $634 million in local projects.
Turkey’s pipeline operator and gas procurement company BOTAS is owned by the Turkish Treasury and managed by the energy ministry.
BOTAS imported 85% of Turkey’s natural gas needs last year. The company is party to Turkey’s long term pipeline gas import contracts with Russia, Azerbaijan and Iran as well as long term liquified natural gas (LNG) import contracts with Nigeria and Algeria. The company also imports spot LNG from up to 13 countries including US and Qatar.
Last year BOTAS pipeline gas imports were 39 billion m3, LNG imports were 11.3 billion m3. Around 5 billion m3 of LNG imports were from the spot market according to energy markets regulator.
BOTAS imported 444 mln m3 of US LNG last year versus 884 mln m3 in Jan-July this year.
The company operates national oil and gas pipeline and onshore and offshore LNG infrastructure.
International subsidiaries include BOTAS International Limited, Turkish Petroleum International Inc (TPIC). The company also owns 30% of TANAP gas pipeline through local subsidiary.
OTHER ACTORS AND MINISTRY-OWNED INFRASTRUCTURE
Turkey has two onshore LNG terminals, one owned by BOTAS, the other by privately owned Egegaz.
Of the country’s two LNG FSRUs one is owned by BOTAS, the other by privately owned Etki Liman.
BOTAS is planning to build Turkey’s third FSRU facility in the northern Aegean.
On top of BOTAS’s 85% share on Turkey’s gas imports last year, seven private companies (Enerco Enerji, Akfel Gaz, Bosphorus Gaz, Bati Hatti, Kibar Enerji, Ege Gaz, Avrasya Gaz, Shell Enerji) imported 7.7 bcm of gas last year.
Tupras (TUPRS.IS) is Turkey’s largest refiner with 30 million tonnes of oil processing capacity in four refineries. A private refiner, the company is mandated by Turkish laws to buy locally produced oil. The company imports its own oil and complies with US sanctions on Iran.
Azerbaijan state oil company SOCAR owns Turkey’s other refiner STAR with 10 million tonnes of oil processing capacity. The company complies with US sanctions on Iran.
Various private companies import refined products.
Reporting by Can Sezer; Editing by Alistair Bell