ENERGY SECURITY IS A SHARED RESPONSIBILITY FOR TPAO AND TURKEY

 

This is a period that governments are placing a priority on energy security, diversification and new sources, regulatory policies to foster investment and ensure reliability and on advancing environmental objectives. Consumers are worried about future supplies and prices and participants in the global economy while worrying about possible shocks, are counting on the energy business to deliver what will be needed for long term economic growth and stability. The dimensions of the energy business are changing in this new energy landscape.

A shortlist of the reasons behind the scene are; worldwide rapid demand growth, supply constraints, investment constraints regarding accessibility, regulations and political risks, high oil prices, environmental policies, energy security concerns and technological advances. 

The excitement created by the huge oil and gas discoveries lately achieved in Caspian Region has not only brought a renewed hope both for regional and the whole world countries, but also resulted to become an arena for competition among neighboring countries for energy projects. Transport corridors are the focus of attention for the Caspian Region. The principle of diversifying the resources, this time applies for the routes.

EU will experience substantial growth of demand for natural gas resulting from increased use of gas in power generation and considers itself in a good position to attract additional gas supplies from diversified resources to meet growing gas demand as opposed to gas supplies from Russia that currently dominate this market.

Recently the EU commission published its energy strategy. It comprises three main aspects of which are; sustainability, competitiveness and security of supply. Energy security is the ultimate goal of the energy supply security concept and of the energy source diversification.

The goal of achieving energy security in the EU countries could only be reached through joint and rapid development of international gas transportation projects that would provide market access to gas from new regions. Such new supply sources could be the countries of Caspian region, North Africa and Middle East.

Prospects of natural gas supplies to Europe from new sources have spurred a number of natural gas pipeline projects, most of which run through Turkey.

Currently there are two large international gas transportation projects nearing completion which are SCP and Turkey-Greece Interconnector. Also there are a number of projects in various stages of discussion of which are Nabucco, TransCaspian Gas pipeline, Blue stream-2, Adria LNG, Pan Arabian Gas pipeline. It is obvious that according to its geographical position, energy policy and TPAOs regional investments, Turkey is becoming a key factor for all new gas pipeline projects.

This is also fitting with the energy strategy of Turkey which is to become an energy hub. The idea is not only increasing the value of Turkey to the EU by making it the host of a fourth energy corridor to Europe, but also, assisting countries especially such as Azerbaijan and Georgia develop their economies.

As national oil and gas company of Turkey, TPAO has significant shares in both upstream and midstream projects in the region; including Azeri-Chirag-Güneshli Oil Field, Shahdeniz Gas Field, BTC main export pipeline and SCP gas pipeline in Azerbaijan. Also TPAO has a joint venture in Kazakhstan with Kazmunaigaz since 1993. Besides development and production fields, TPAO has a share in an exploration block within the Georgian Black sea sector and Alov exploration project in the Caspian Sea.

 

Considering the energy is the most important instrument for the foreign policies of the Caspian countries; Turkey and TPAO with its strong political support and technical capability will continue to take part in the projects that are supporting the regional development.