Türkiye plans to spend nearly TL 182 billion (over $6 billion) as part of its energy and mining investments throughout 2024, a senior official said on Wednesday, spearheaded by natural gas and oil exploration and production, a part of the drive to lower the country's external dependency.
Nearly TL 1.1 trillion of the public budget has been allocated for more than 12,000 projects this year, according to the 2024 Investment Program released late Monday.
Some 7.5% of that, or TL 75.7 billion, is intended for the energy sector, marking a 70% year-over-year increase, Energy and Natural Resources Minister Alparslan Bayraktar said.
The amount tailored for the mining industry has been increased by 34% from a year ago to TL 106 billion, Bayraktar said in a statement.
Heavily dependent on imports for its energy needs, Türkiye has ramped up its hydrocarbon explorations in the Black Sea and the Eastern Mediterranean over the years.
It injected vast capital to expand and strengthen its infrastructure and energy networks and strives to address climate change and secure a cleaner energy future.
Seeking to curb its dependence on external resources, Türkiye has been developing the 710 billion cubic meters (bcm) natural gas field in the Black Sea, which was gradually discovered in August 2020.
In April 2023, it started pumping gas from the Sakarya field off the northwestern Zonguldak province into the national grid through a pipeline linked to an onshore processing plant. The daily production of gas from the reserve stands at around 4 million cubic meters (mcm).
Türkiye has also expanded oil production from a vast reserve discovered in the southeastern province of Şırnak's Mount Gabar, long a victim of a heavy terrorist presence.
Bayraktar said most investments will be tailored for natural gas and oil explorations and production.
"We are planning to expand our production areas, particularly in the Sakarya Gas Field and Gabar region and increase production through an investment of approximately TL 100 billion," the minister said in a statement.
"As part of this initiative, we aim to conduct 327,000 meters of exploration drilling and 399,000 meters of production drilling in 2024."
Some TL 6.6 billion will be invested in new energy sector projects. The budget allocated for ongoing projects totals TL 68.4 billion and TL 536.6 million will be used to finance the preparatory stage of projects.
Storage, supply expansion
Of the allocated funding, TL 65.4 billion has been allocated for public economic enterprises. Türkiye's state pipeline operator, BOTAŞ, will receive the majority of the funding at TL 29 billion.
Bayraktar said the figure intends to expand natural gas storage capacities and construct and modernize natural gas transmission lines and supply to areas without access.
Some TL 8.4 billion of BOTAŞ funding will be used for the Tuz Gölü (Lake Tuz) natural gas storage facility located in the central Anatolian province of Aksaray. Due to completion in 2027, the project aims to increase storage and production capacity.
TL 7.8 billion has been awarded to infrastructure projects to deliver natural gas to 26 provinces; a further TL 6.5 billion will be used for the modernization and rehabilitation of pipelines and associated facilities in 81 provinces.
Among others, some TL 28 billion is intended for the Turkish Electricity Transmission Corporation (TEIAŞ) and TL 8 billion will go to the Electricity Generation Company (EÜAŞ).
TEIAŞ will invest in electricity transmission lines and substations.
Resources cover a total of 163 projects in the energy sector. TEIAŞ takes the lead with 63 projects, followed by EÜAŞ with 30 and BOTAŞ with 20 projects.
Türkiye last week announced plans for about $20 billion of energy efficiency investment by 2030 through collaboration between the public and private sectors, seeking to achieve billions of dollars in energy savings and curb carbon dioxide emissions.
Bayraktar said this would enable the country to save $46 billion worth of energy by 2040.
The country has an ambitious plan to triple its renewable energy capacity by 2053 as it strives to become a carbon-neutral economy. About 55% of its installed power capacity is currently derived from renewable energy sources. The rate makes it fifth in Europe and 12th in the world.
It ranks fourth globally and first in Europe in terms of installed geothermal capacity. It is second in Europe and ninth in the world in terms of installed capacity of hydroelectric power plants. It plans to add about 5,000 megawatts of offshore wind power to its energy portfolio in the coming years.
Mining front
On the mining front, investments will cover 47 specific projects and most of the funding will go to the state energy company Turkish Petroleum Corporation (TPAO).
TPAO will be allocated TL 99.81 billion, while Turkish Coal Enterprises, a key player in domestic coal production, is set to receive TL 2.1 billion.
"Through the investments we plan to make in the energy and mining sectors, we aim to make confident strides toward our objectives. Hopefully, the discovery of new reserves in natural gas and oil, coupled with the production increases we anticipate, will play a pivotal role in our advancement," said Bayraktar.
"The private sector bears a substantial responsibility in this endeavor. I am confident that private sector investments, especially in the realm of renewable energy production, will make a significant contribution to our goals, surpassing public investments by a significant margin."
The Turkish state-owned mining and chemicals company Eti Maden will implement 11 projects this year, followed by TPAO with 10 and the General Directorate of Mining and Petroleum Affairs with seven major projects.
Türkiye's diverse landscape has shaped the rich history of mining, which includes a wide range of geographical areas and minerals that have become a cornerstone of the country's economy, underpinning industrial growth and fostering job creation.
Türkiye is home to 70 different types of natural resources and is actively involved in the international trade of 60 of these minerals.
The country is well-known for having some of the world's top deposits of vital minerals, including boron, marble, trona, feldspar, barite, gypsum, chromium and cement.
Among the resources found in the country is an abundance of valuable metals and minerals, including gold, silver, nickel, aluminum, iron, copper, lead, zinc and antimony, confirming Türkiye's position as a major player in the mining industry.