Ukraine is happy to cooperate with Turkey to develop听many fields of its energy sector, senior advisor to Ukraine's听national natural gas company,听Naftogaz's chairman听said Wednesday.
Naftogaz is Ukraine's national natural gas听vertically integrated company, which also operates as a听transmission company carrying听Russian gas to Europe. Europe meets its 23 percent natural gas needs from Russia and Naftogaz carries 70 percent of that amount from Russia to Europe听via Ukraine.听
鈥淭urkey and Ukraine are potentially two of the听largest听gas markets听in the region听but听the volume of cooperation between the two countries听presently听is at very early stages,鈥� Sergiy Oleksiyenko, senior advisor to Naftogaz's chairman said in an exclusive interview with Anadolu Agency.
He stated that Turkey's emergence as a transit country for energy from the Central Asia to Europe will require lots of investments in infrastructure and underground gas storage facilities.
鈥淯kraine is operating one of the largest pipelines and听gas听storage听systems in Europe. We can help Turkey听with our expertise in building听its required new energy infrastructure.听The future of Central Asian gas coming听to Europe depends very much on the ability of Turkey to听master new infrastructure projects鈥� Oleksiyenko emphasized.
-听Cooperation expected for LNG tankers at Bosphorus
He explained that liquefied natural gas,听LNG,听currently听is a more expensive source听of energy than natural gas听delivered by pipelines,听however, the supply of LNG will increase by 50 percent in the next 5 years and听significant reduction in the LNG听price听is expected.
Oleksiyenko stated that currently听Turkey is importing LNG听slightly听cheaper than the Russian听pipeline听gas and LNG will听potentially be even much cheaper.
鈥淎t the moment, use of LNG in Ukraine is not existent. We first need to construct the LNG terminal and have a source of LNG听supply.听We hope to cooperate with the Turkish government听on this matter. We are ready to construct the LNG terminal but need the cooperation of the Turkish government on the听safe,听transparent and fair market principles for听passage听of LNG tankers through听Bosphorus,鈥� Oleksiyenko underlined
鈥淭o make听this听project听possible, we are ready to discuss听equity participation in Ukraine's LNG terminal听with Turkey,鈥� he offered.
-听Turkey could save $1.4 billion for gas听
Oleksiyenko stated that a number of countries in Europe pay excess amounts听for听Russian gas over hub prices.听
鈥淲e听launched a major new gas route between Slovakia and Ukraine in 2014. Thanks to that, we听were听importing听nearly听70 percent of our needs from Europe听in听Q1 2015. The听current interconnector鈥檚听capacity听with the West听can provide up to 90 percent of Ukraine's听gas听import听needs,鈥� he said.听 听 听
鈥淚f we sign interconnector听agreements听with Slovakia, and enable the 鈥榖ig reverse flow鈥�, we can supply听up to听3.8 billion cubic meters听of gas per year from European gas hubs听to Turkey through the Bulgaria-Turkey interconnector. Turkey currently is the largest overpaying country for听Russian gas. If Turkey has an听option to import听cheaper听gas from听European gas hubs, it could save听more than $1.4 billion per year,鈥� Oleksiyenko argued.
He also said as a potential benefit for cooperation between the two countries, Turkey's petroleum pipeline company,听BOTAS,听and Naftogaz can facilitate discussions so Turkey can acquire听sufficient capacity of Ukraine鈥檚 huge听natural gas storage.
听鈥淩ussia practically听undersupplies some听volumes听every year听in the cold season, sometimes shortages occur in the听Istanbul area. We can dedicate听some听gas storage听in Ukraine for Istanbul,鈥� Oleksiyenko听concluded, adding that听gas can flow through the Balkan pipeline and balance the shortage in Istanbul.听
By Nuran Erkul
Anadolu Agency
nuran.erkul@aa.com.tr
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