BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 1
BOTAŞ PETROLEUM PIPELINE CORP.
BOTAŞ Projects and the Energy WorldCurrent Issues & Future Prospects of the Industry
BOTAŞ Projects and the Energy WorldCurrent Issues & Future Prospects of the Industry
May, 2011
Emre EngürHead of International Projects Department
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 2
Established in 1974
Built, Own and Operate 2,332 kms of domestic and cross-border oil pipeline system
Built and Operate 1,076 kms BTC Pipeline System (P/L, Loading Terminal, 4 PS etc)
Built, Own and Operate 12,000 kms of pipeline transmission system with 318 MW Compressor Station power
Built, Owned, Operated and Transferred 2 city distribution system (Bursa, Eskişehir)
US $ 12 bn sales revenue (2009)
BOTAŞ with Numbers
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 3
Crude Oil Pipelines
IRAN
IRAQ
ARMENIA
GEORGIABULG
ARIA
GREECE
SYRIA
Ankara
Karaman
Konya
Eskişehir
İstanbul
Batman
Kırklareli
Aliağa
Zonguldak
Afyon
ŞanlıurfaGaziantep
DiyarbakırŞırnak
Ardahan
Adıyaman
BayburtSivas
Amasya
Kayseri
Yozgat
Malatya
Kırşehir
Nevşehir
Muğla
Kırıkkale
KarsOrdu Trabzon
Gümüşhane
Artvin
Ceyhan
Mardin
Aksaray
Kahramanmaraş
İzmir Turgutlu
İskenderun
Bartın
Antalya
Edirne
Erzincan ErzurumHorasan
Bursa
Sakarya
Çanakkale
Samsun
Şelmo
A
B
C
DF
A : I. KERKUK-CEYHAN CRUDE OIL PL 40" 641 KM
B : II. KERKUK-CEYHAN CRUDE OIL PL 46" 656 KM
C : BAKU TBILISI CEYHAN CRUDE OIL PL 30“ 42“ 46“ 1076 KM 50 MTA CAPACITY
D : SELMO-BATMAN CRUDE OIL PL 6" 8“ 12“ 41 KM 0.8 MTA CAPACITY
E : BATMAN-DORTYOL CRUDE OIL PL 18“ 511 KM 4.5 MTA CAPACITY
F : CEYHAN-KIRIKKALE CRUDE OIL PL 24" 448 KM 7.2 MTA CAPACITY
E
71 MTA CAPACITY
3400 kmsof
Crude OilPipeline
AZ
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 4
High Pressure Natural Gas Pipelines
845190 185 19 31
42311 174 122
1,4901,020 833
1,731 1,899
1,009395
735 912
6,078
12,024
845 845 1,035 1,220 1,220 1,2391,270 1,693 1,704 1,878 1,878
2,000 3,490
4,5105,245
10,620
8.333
7,809
11,629
0
2000
4000
6000
8000
10000
12000
14000
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
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20
04
20
05
20
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20
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20
08
20
09
kms
Provinces reached: 67
Upon completion of existing investments: 72
Target: All over the country
Length of Pipelines in 1989845 kms
Length of Pipelines in 20001,875 kms
Length of Pipelines in 2010 >12,000 kms
BOTAŞ existing system reached all over the country, waiting to transit to Europe...
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 5
Russian Fed (6 BCM+ 8 BCM)
6.6 BCM
Azerbaijan14 BCM Russian Fed (Blue Stream)
16 BCM
LNG
(Alg
eria
+ N
iger
ia)
5.2
BCM
Iran
10 BCM
Turkmenistan16 BCM
Planned/Hanging Gas Contracts Existing Imports (Plateau Period)
Iraq
10+ BCM
?
Natural Gas Pipeline System & Supply Contracts
Gas source diversification, Security of Supply!
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 6
Natural Gas Supply Contracts
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 7
Natural Gas Imports and Consumption
Import by Countries
Consumption by Sectors
32.5 BCM 2010
37.8 BCM 2008
17.0 BCM 2002
0.5 BCM 1987
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 8
Supply Potentials to Growing European Demand
European gas
demand grows,Supply sources
waiting to be
developed
83.0%
89.6%83.4%
59.1%
96%
0
100
200
300
400
500
600
700
800
Actual EC 2008 CNRS-OME 2009 IEA 2009 CNRS 2009
Bcm
0%
20%
40%
60%
80%
100%
Production Net Imports Import dependency
2008 2030 2050
Source: OME
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 9
Total Pipe Length : 296 km Turkey (Onshore) : 211 km Offshore : 17 kmGas Supply Date : 16 November 2007
First Phase of Interconnector Turkey-Greece-Italy (ITGI)
Interconnector Turkey-Greece Project (ITG) (first phase)
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 10
Interconnector Turkey-Greece (ITG): (First Phase) The engineering and EIA studies conducted. Half cost of these studies are granted by EU TEN funds. Basic and Detailed engineering studies of the project completed in 2003.
Construction completed late 2007 Natural Gas Sales and Purchase Agreement was signed on December 23,
2003 in Ankara, by Botas and Depa. Accordingly, delivery volume by the line will be 750 MCM to DEPA. The line is operational since late 2007.
Interconnector Turkey-Greece-Italy (ITGI): (Second Phase) gas volume is envisaged to be increased to 12 BCMA in 2016 of which 8 BCMA for the Italian market and the rest to the Greek market.
BOTAS, DEPA and Edison are in cooperation for the project. Technical feasibility study is completed and studies are ongoing.
IGA signed on the 26th of July 2007 in Rome Latest MoU signed by Botaş, Depa and Edison on the 17th of June 2010
Gas to Southern Europe: Greece and Italy (second phase)
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 11
The Turkey-Greece-Italy (ITGI) Project
The first and most important step for the realization of South European Gas Ring Project (SEGR) is Turkey Greece Italy Pipeline‐ ‐ Project. The aim is to transport natural gas from the potential producers of the Caspian and Middle East to Greece and Italy via Turkey.
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 12
The Nabucco ProjectThe Nabucco Project
At the first stage, feeder lines to transport gas from points on the Georgian and Iraqi borders to Sivas, where the main Nabucco pipeline will start.
3,300 to 4,000 kms (depending on feeders) 56” line Approx. 2 million tonnes steel 31 BCM capacity Total budget of the project is estimated to be
some € 8 billion Target Start Date: 2016
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 13
The Nabucco Gas Pipeline Project will connect Turkey with Austria via Bulgaria, Romania and Hungary. In February 2002 the project is proposed by Botas to relevant companies and the Co-operation Agreement was signed among the associated companies of respective countries on October 11, 2002.
Five companies, namely BOTAS (Turkey), Bulgargaz (Bulgaria), Transgaz (Romania), MOL (Hungary) and OMV Gas (Austria) have established the Nabucco Gas Pipeline International Co. to invest in a pipeline to transport natural gas from points on the eastern/sothern borders of Turkey to facilities at Baumgarten in Austria.
The project is planned to transport up to 31 bcm/y of natural gas from Caspian Region and the Middle East.
Studies are going on for issues like finance, marketing, legal works, shipping contracts
FEED study ongoing
A new partner joined in Febrary 2008: RWE
IGA signed on the 13th of July 2009 in Ankara
Gas to Central & Western Europe: The Nabucco Project
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 14
Source: TAP
Trans-Adriatic Pipeline Project (TAP)
First EGL Proposal
EGL, StatoilHydro & EoN Ruhrgas Partnership
10 BCM planned
20 BCM potential
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 15
TAP
IGI ITGI
All projects started in a better world of Supply
Direction of supply to show the first comer
Still target to have all realised at the same period
Transit Through Turkey
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 16
Projections for Turkey-More Sources to Reach
Turkey seems to remain as a net importer of natural gas.
Economy recovers nd gas consumption to start rising, increasing the bill for imports to real significant numbers.
With current level of dependency on natural gas in power generation and industry, significant price reductions are needed to keep the industry competitive.
Balanced diversification of supplies is essential to reduce dependency on particular supply sources as well as import prices
International projects of trade and transit will be important for such diversification.
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 17
What to Gain from Transit-Security of Supply
ENHANCED
SECURITY OF SUPPLY
MORE
FAVORABLE GAS
PRICE CONDITIONS
TRADE
AND
TRANSIT
Some kind of a netback price mechanism for domestic consumption
Cost-based transmission tariffs
Partial exemption from TPA for trading of excess volumes
Removal of final destination clauses
Balanced diversification of suppliesUnderground storage capacities to serve both domestic market and end consumers in Euope
Use of existing infrastructure and idle capacities to the extent possible
TRADE
AND
TRANSIT
BOTAŞ
BOTAŞ, Petroleum Pipeline Corporation Slide 18
Trans-Caspian
Turkmenian Gas
Egyptian GasArab Gas PL
Iraqi Gas
Shah Deniz
Nabucco
ITGIArab Gas
PL
Blue Stream
Russian Gas-West
Nabucco
Trans-Caspian
Kazakh Gas
ITG
Iranian Gas
Bosnia Herzegovina
Austria
İzmir
Ceyhan potential LNG liq.
TAP
Potential Hub