Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts

Friday, 15 June 2012

Natural Gas Europe - The BTE Pipeline Blast: The Implications of Sabotage


Below is my latest article for Natural Gas Europe - original here.


At the end of May, the Baku-Tbilisi-Erzurum pipeline carrying gas from Azerbaijan to Turkey blew up in the Turkish section. Full supplies were suspended until 11 June, whilst repair work was carried out on the line. The extent of the damage and the reluctance of Turkish officials to confirm the cause have led to widespread speculation that Kurdish militants were responsible.


If this is the case it underlines the ongoing security threats to gas supplies to Turkey, and highlights the risks which new pipelines to bring Caspian gas to Europe may face. Although Ankara has emphasised the importance of securing critical energy infrastructure, pipelines remain extremely vulnerable. Whilst the Kurdistan Workers’ Party (PKK) remains active, providing perfect security will remain impossible.


Information about the BTE blast, which took place on 29 May in or near the city of Kars, remains extremely scarce.  The route of the BTE pipeline runs through Turkey’s northeast and eastern regions, a little outside the PKK’s normal operating area of southeastern Turkey but certainly not out of their reach. A 2008 attack on the BTC oil pipeline took place in Refahiye, which is significantly west of Kars and also out of the PKK’s usual operating area.

Thursday, 12 April 2012

Untangling Turkey’s Gas Pricing Knot


Leaked figures on the cost of Turkey’s gas imports, and sharp hikes in domestic electricity and gas prices, have refocused attention on the country’s energy strategy. With economic growth beginning to slow, the high price of imports may become an increasing burden. Analysis of the leaked figures suggest that, despite Turkey’s commercial stand-off with Iran, the real problem lies to the north.
On 1 April the government hiked domestic gas prices by 18.7%, with electricity prices (which are linked, since most power plants are gas-fired) rose 9.3%. The rises were intended to stop losses occurring at state energy firm BOTAŞ and followed three consecutive rises in gasoline prices last month.
Energy Minister Taner Yıldız, taking what some called a “defensive” stance on the issue, sought to deflect anger from both the opposition and the wider public by insisting that he too was displeased by the price hike but that it was unavoidable in the current climate. He said that the prices rose due to a weak lira and increasing oil prices on the back of geopolitical tensions, which had a knock-on effect on natural gas prices.
Most significantly, Yıldız asserted that the price rises would be even higher without the – still unspecified - discount obtained from Russia at the end of last year. That discount was obtained after Turkey gave permission for Gazprom’s giant South Stream pipeline to cross Turkey’s Black Sea waters.

Monday, 9 January 2012

Natural Gas Europe - Turkey’s Bold Move Shakes up the Southern Corridor


My latest article for Natural Gas Europe is below. The original article can be found here:

The news that Turkey has given Gazprom’s South Stream pipeline permission to cross its territorial waters was, Vladimir Putin announced, a “New Year’s gift for Russia”. Just days before, Turkey had also given Azerbaijan’s SOCAR a valuable Christmas present with a deal approving the construction of the new Trans-Anatolian pipeline. These agreements close out a remarkable year for Eurasian gas politics which has seen old pipelines fall and new ones rise.

Friday, 2 December 2011

Natural Gas Europe: China Undercuts Russia and Europe with New Turkmen Gas Deal

From now on I'll be writing regular pieces for Natural Gas Europe, the go-to site for news and analysis on European gas issues, and will reblog them here.


A new gas deal between Turkmenistan and China suggests that Beijing is seeking to steal a march on both Russia and Europe for Turkmen gas supplies. Further signs of an eastward shift by Turkmenistan could have a profound impact on regional energy geopolitics, but there may be less to the latest news than meets the eye.