MOTIVATION

 

Turkey has been experiencing rapid demand growth in all segments of the energy sector for decades. Recent forecasts indicate that the growth trend of 6-8 % per year will prevail in the energy sector in the following years. The primary energy consumption, which reached around 92 million tons of oil equivalent (toe) in 2006 will rise to 126 million toe in 2010 and 222 million toe in 2020.

 

Additionally, Turkey has a unique geographical location; it is in close proximity to ca. 72% of the world’s proven gas and oil reserves. Turkey is not only a transit corridor owing to its geographical location, but it is also an energy hub. Through the completion of the oil pipeline projects, like BTC, it is anticipated that 6-7 % of global oil supply will transit Turkey by 2012 and that Ceyhan will become a major energy hub and the largest oil terminal in the Eastern Mediterranean. The extension of the Blue Stream Gas Pipeline to Ceyhan and thence to Ashkelon with a view to supplying Israel with Russian natural gas is also under consideration. These developments attest to the strategic role Turkey will increasingly assume as a major transit energy highway between the world’s economic centers and sources of energy. 

 

Turkey recently issues new or revises the existing environmental laws and regulations in order to create a convincing environment for new investments. An independent authority has been established for regulating the energy market, The Energy Market Regulatory Authority (EMRA), Energy Efficiency Law has been enacted in 2007 and substantial restructuring and liberalization level has been achieved, which enables Turkey’s integration to EU International Energy Market.

 

Turkey has attracted domestic and foreign investors not only with its geo-strategic position makes it a natural energy bridge and a transit point between the main oil producing areas in the Caspian, Caucasus and Central Asia on the one hand, and consumer markets in Europe on the other, but also as a country with a high and fast increasing energy demand. Considering its central position as energy transport hub, Turkey has unique advantages in terms of its ability to diversify the energy sources. There are plans for building new refineries in Ceyhan region which will be used in refining the crude oil transported to the valuable refined products for domestic use as well as prior to shipment to final users. Turkey has also its own raw materials for energy production, like coal and lignite, for which the implementation of novel processes are needed to produce energy without harming the environment; investment plans have been already announced for energy production utilizing domestic raw materials. Existing fuel refineries have been announcing extension plans; national and international consortiums, which are specialized in refineries and petrochemical facilities, have entered Turkish market through acquisitions and/or through completely new investment plans.