Türkiye is undergoing a strategic shift in its energy supply portfolio, moving from long-term gas contracts to more flexible agreements, a senior official said late Tuesday.
This shift is aimed at enhancing the competitiveness of the nation’s energy market, Energy and Natural Resources Minister Alparslan Bayraktar told a panel on the sidelines of the Gastech 2024 energy forum in Houston.
Addressing the challenges Türkiye faces, Bayraktar emphasized the importance of diversifying energy sources to reduce dependency on imports and meet rising demand.
Two-thirds of Türkiye’s primary energy is currently sourced from imports. To counteract this reliance, the country is pursuing policies to support its energy transition, with a long-term goal of achieving a carbon-neutral economy.
"We cannot afford to say no to alternative energy solutions," Bayraktar said, highlighting the country's openness to various energy sources as part of its strategy to meet demand, reduce dependency and facilitate its energy transition.
One of the cornerstones of Türkiye’s energy strategy is the extensive investment in its natural gas infrastructure, which includes underground storage facilities and regasification units.
Since 2020, Türkiye has discovered its biggest ever natural gas reserve in the Black Sea, and has ramped up its regasification capacity by five times, Bayraktar explained.
In less than four years, the country has supplied natural gas to 2.6 million households and aims to expand this reach significantly, the minister noted.
He pointed out that Türkiye has increased its regasification capacity and continues to invest heavily in gas infrastructure.
"Now our entire supply portfolio is shifting from long-term pipeline gas contracts to more flexible long-term energy agreements. This is creating a significant difference in the market, and with these infrastructure investments, we are bringing more competitive solutions to the market," said Bayraktar.
With a long-term goal to reach 100 gigawatts of renewable energy capacity by 2035, Türkiye is also focusing on nuclear energy, digitalization, and integrating its power grid with neighboring markets.
The government is committed to reducing carbon emissions to net zero by 2053 and looks to rely on renewable sources and nuclear energy to achieve that goal.
By 2035, Türkiye aims to boost its renewable energy production capacity to 100 gigawatts. Bayraktar stressed the role of nuclear energy in the nation’s broader energy mix, describing it as crucial for long-term sustainability.
Türkiye plans to add 7.2 gigawatts of nuclear capacity by 2035, with a longer-term goal of 20 GW by 2050, including small modular reactors (SMRs).
"We are taking a comprehensive 360-degree approach to energy policy," Bayraktar said, referring to initiatives in critical mineral exploration, solar panel production, and increasing the capacity of transmission grids.
These efforts also include integrating Türkiye’s energy network with neighboring markets and advancing the country’s digital infrastructure.
Türkiye plays a critical role in Europe’s energy security, especially through various collaborations from the Middle East to Europe, according to Bayraktar.
"We have started producing our own gas, but at the same time, we have made significant investments in international pipeline projects and increased our regasification capacity. Now, we can import more than we need," he said.
Türkiye is Europe’s fourth-largest gas market, with 50 billion cubic meters (bcm) of gas consumption annually. The gas infrastructure, coupled with international pipeline projects and regasification investments, enables Türkiye to bring up to 75 bcm of gas to its domestic market.
Bayraktar noted that with excess capacity, Türkiye could export up to 25 bcm to European markets.
He stressed that achieving a balance between producer, transporter, and consumer countries would lead to long-term and successful partnerships.
