Turkey's negotiations with Russia to conclude a gas hub agreement are ongoing. The hub in Istanbul could become operational in 2025.
This was said by Turkish Energy Minister Alparslan Bayraktar.
"We have created a strong trading infrastructure that could be operational as early as 2025 in the Istanbul financial center within the framework of the partnership between Botas and Gazprom," Bayraktar told the Milliyet newspaper.
"We sent (Russia) a memorandum of understanding," Bayraktar said, adding that Russian President Vladimir Putin had told his Turkish counterpart Erdogan that he would give Gazprom instructions on the gas hub. Bayraktar also said that an Istanbul Gas Index will be established, meaning that gas prices will be set in Istanbul and Russia will sell its gas at prices based on this index.
Turkey, which has announced its ambition to become a gas hub by increasing both imports and exports, is in the process of negotiating supply deals with producers and consumers.
During Erdogan's visit to Russia for the BRICS summit in October, Turkish and Russian leaders continued to discuss ways to develop the potential and specifics of a gas hub project in Turkey.
The idea of a gas hub in Turkey was first floated by Russian President Vladimir Putin in October 2022 after the Nord Stream pipeline explosions.
Turkish President Recep Tayyip Erdogan has expressed considerable interest in the idea as Russia seeks to replace lost sales to Europe. The country's efforts to become a gas hub resumed in September 2023, when Putin and Erdogan met in Sochi. During the meeting, a road map between Russian energy company Gazprom and Turkey's Botas Oil Pipeline Corporation was mentioned, with the next move being the creation of a joint working group. | BGNES
