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TURKEY - Energy Base Is Expanding Fast, Despite Obstacles.

The energy base of Turkey keeps expanding faster than most other countries in the world, with primary energy consumption in 2000 forecast to reach 68.5 million tons of oil equivalent. In 1999 it was estimated at 65.3m toe compared to 60.1m toe in 1996 and 39.3m toe in 1986. The sources of energy are oil, coal, gas and hydropower, in that order. Turkey is shifting rapidly to natural gas for power generation and other industrial uses.

Most of Turkey's energy needs are imported from neighbouring countries, with about 59,900 b/d of crude oil being produced locally and used for the domestic market. The main oil suppliers are Iraq, Saudi Arabia and Iran. Gas is imported by pipeline from Russia and in LNG form from Algeria, with some LNG purchased on spot basis (see OMT & Gas Market Trends No. 18).

Due to rapid growth in consumption, Turkey has chronic energy problems. Blackouts are affecting both urban and rural areas. Infrastructure bottlenecks are a constraint on future economic growth. Local and foreign companies are concentrating on the power sector, as new plants are urgently required to meet demand rising at rates of 9-11% per annum.

The current coalition government, led by Bulent Ecevit, finally managed to get parliament on Aug. 13, 1999 to approve constitutional changes clearing the way for private power projects (IPPs) to get off the ground and for key privatisations to go ahead, after delays since 1984. But foreign and local investors have recently faced further delays resulting from a new national energy policy and from lengthy procedures required to modify contracts for IPPs and distribution projects (see following pages).
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Comment:TURKEY - Energy Base Is Expanding Fast, Despite Obstacles.
Publication:APS Review Downstream Trends
Geographic Code:7TURK
Date:Apr 17, 2000
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