Turkey is poised to become a significant global energy player as it targets the launch of an international gas hub in 2025, in collaboration with Russia’s Gazprom.
Turkish Energy Minister Alparslan Bayraktar announced this ambitious plan on Friday.
The hub, to be established within the Istanbul Financial Center, will operate under the Botas-Gazprom partnership.
Gas prices will be determined by the Istanbul gas index.
Turkey is also seeking a preferential gas price when its existing contract with Russia expires in 2025.
Minister Bayraktar expressed confidence in the security of gas supplies, even if Ukraine decides not to extend its gas transit contract with Russia, although he acknowledged potential price increases.
The gas hub project, initially proposed by Russian President Vladimir Putin in October 2022, gained momentum following the damage to the Nord Stream pipelines.
Turkey, with its strategic location and robust infrastructure, is well-positioned to become a crucial gas transit and pricing center.
By establishing this hub, Turkey aims to increase its annual gas imports from 50 billion cubic meters to 70-80 billion cubic meters.
This development will solidify Turkey’s role as a regional energy powerhouse and strengthen its energy security.