Türkiye has $289 billion in resources that will contribute to reducing the current account deficit in the medium term according to data from the Central Bank of the Republic of Türkiye (CBRT), and the energy sector has the potential to contribute the most.

From 2023 to 2030, it is anticipated that 35.2% of investments and support aimed at bolstering the current account surplus capacity will stem from technology investments, while 21.4% will be derived from an increase in tourism income.

The energy sector is responsible for the largest share, at 41.6%, in efforts to diminish the current account deficit.

Cihad Terzioğlu, the general manager of 360 Energy, provided an assessment to Anadolu Agency (AA) concerning these energy projects.

He highlighted that global oil and natural gas prices are the primary factors influencing the energy import bill.

Terzioğlu emphasized the pivotal role of energy discoveries in shaping the country's energy policies and impacting the current account deficit. "We continue to witness new natural gas and oil discoveries, with each announcement potentially leading to further findings. As a result, the effect of energy projects on the current account deficit could exceed initial expectations within the next decade," he explained.

Reiterating that more than 700 billion cubic meters (bcm) of natural gas was discovered in the Black Sea, Terzioğlu said, "Following the natural gas, there was also the discovery of oil on land."

In the last discovery made in Gabar, when full capacity is reached, there will be a production of 100,000 barrels per day.

Considering that Türkiye's consumption of oil is 1 million barrels per day, with the new discovery, the country will meet 20-25% of its need. "We foresee that the money we will pay for energy imports will decrease thanks to the natural gas and oil discoveries, together with the discovery of natural gas in the Black Sea and possible other discoveries."

Türkiye last month started natural gas production from the vast reserve discovered in the Black Sea, which promises to curb the country's external dependence and cut consumer energy prices.

In a major ceremony, President Recep Tayyip Erdoğan green signaled the first delivery to an onshore plant, which will begin with 10 million cubic meters (mcm) of gas daily in the first phase.

Production will be increased to 40 million cubic meters of gas per day in the coming period after other wells go into operation.

The discovery went down in history as the largest gas discovery ever in Türkiye, which went on to be gradually revised upward.

Türkiye’s new oil discovery in the country’s southeastern region of Gabar, meanwhile, is estimated to increase the country’s overall hydrocarbon production from 100,000 barrels per day (bpd) to 180,000 bpd, with an estimated yearly financial contribution of around $2.9 billion.

The recent discovery is one of many oil and gas explorations undertaken by the country since 2020, the success of which has been demonstrated by the start of production from reserves made in December last year in Mount Gabar, where net reserves of 150 million barrels valued at $12 billion were identified.

Dubbed "one of the top 10 onshore discoveries in 2022," the discovery increased the country’s proven oil reserves from 450 million barrels to 600 million barrels.

It came just a few months after the country announced the discovery of $1 billion worth of oil reserves in the Çukurova field in the southeastern Adana province.

Terzioğlu, meanwhile, went on to highlight the significance of nuclear energy as a clean source for Türkiye’s energy security, emphasizing that the country’s first nuclear plant, Akkuyu Nuclear Power Plant (NPP), with a capacity of 4,800 megawatts and expected contribution to 10% of the country's electricity needs, plays a vital role in reducing energy imports and positively impacting the current account deficit.

Türkiye gained the status of a country boasting nuclear energy, as Akkuyu NPP received the initial batch of nuclear fuel also in last month.

The plant will be fully operational by 2028 and supply 10% of Türkiye’s electricity consumption, expected to contribute $1.5 billion (TL 29.15 billion) annually to decrease Türkiye's natural gas imports and will have a "positive impact" on national income.

The Akkuyu NPP is being built by Russia's state atomic energy company Rosatom in Mersin province on the southern Mediterranean coastline.

It is scheduled to see the first of its four reactors go online in the first half of this year.

Additionally, Terzioğlu underscored the importance of renewable energy as another source of clean and sustainable power. The introduction of new tenders and incentives in the renewable energy sector has enhanced the feasibility of such projects and stimulated investment interest.

Cutting-edge solutions

Terzioğlu further discussed the implementation of crucial initiatives aimed at harnessing the country's underground resources for economic benefits. He noted that projects such as the boron carbide plant and rare earth elements would also have a favorable impact on Türkiye’s current account deficit.

In relation to the energy field, Terzioğlu identified high-tech endeavors with the potential to impact over $100 billion within the next decade.

"The development of electric vehicles and their components, in particular, holds great potential for import substitution. Türkiye has made significant strides in this area, including the establishment of a battery production facility following the emergence of the country’s first domestically-made electric car, Togg," he said.

"The production of high-engineering products in sectors such as electric vehicles, nuclear technology, batteries, storage and defense not only stimulates advancements in energy but also contributes to reducing Türkiye’s current account deficit. When we consider the collective impact of oil and natural gas discoveries, incentives for nuclear facilities, renewable energy plants, the boron carbide plant, import substitution strategies for rare earth elements, and cutting-edge solutions in storage, battery technology, electric vehicles, and energy efficiency, these factors will play a pivotal role in diminishing the current account deficit over the next decade, presenting a significant advantage," Terzioğlu emphasized.