Gazprom has sharply reduced gas supplies to Turkey

Gazprom has sharply reduced gas supplies to Turkey via the so-called “Western route” (through Ukraine, Moldova, Romania and Bulgaria), informs “Interfax” referring to the company “Bulgartransgaz”.

Already 10 February 2016 the volume of supply decreased compared with the same number of the previous year by 10%. Further deliveries continued to decline, falling at the peak of its volume has been halved.

According to February 24, 2016 (last reporting date) to Turkey via the Western route reached 26.7 million cubic meters of Russian gas, which is 40% lower than a year earlier.

One of the reasons for the decreasing demand for gas is called warm winter in mid – February, the air in Istanbul has warmed up to 19 degrees Celsius. However, the source of “Interfax” in the Ministry of energy of Turkey explained that the main factor in reducing the supply is a price dispute between Gazprom and private Turkish gas companies.

“Russia has reduced shipment of gas to Turkish private companies. Companies, as you know, the dispute about the price with “Gazprom”, – the official said (quoted by “Interfax”).

According to a source in the “Gazpromeksporta”, “Gazprom” is valid from February cut gas supplies to Turkey due to the lack of agreement at a discount of 10.25%, which is asking for private Turkish companies. “We chose this method of negotiations. It’s not because of the weather”, — said the interlocutor.

Official representative of “Gazprom export” have refused comments.

At the end of January 2016 the Turkish Anadolu news Agency citing its sources reported that Gazprom has taken the decision to cancel previously granted to companies “Bosphorus GAZ”, “Enerco energy”, “Baht Hatta”, “Kibar Enerji”, “Avrasya Gas, and shell energy” discounts on gas at 10.25 per cent.

A source in “Gazprom export” has confirmed that the discount is really cancelled. The second source in the company said that the talks about it continue, but the discount has lost economic relevance due to the fall in oil prices.

In 2015 Gazprom supplies to Turkey 27,01 billion cubic meters of gas, the main buyer was the state company Botas. Private Turkish companies have purchased from Gazprom 8 billion cubic meters of gas, received in the form of discounts $25-28 for each 1 thousand cubic meters and save around $200-220 million, explained Deputy Director of the national energy security Fund Alexei Grivach.

The agreement between Russia and Turkey about a discount of 10.25% to the effective price was achieved in February of 2015 based on the increasing supplies to Turkey after the construction of the new pipeline “Turkish stream” under the Black sea. However, after the deterioration of relations with Turkey the project was shelved.

Turkey is the second largest market for Gazprom after Germany. Deliveries of Russian gas to Turkey carried out by passing under the Black sea gas pipeline “Blue stream” and TRANS-Balkan pipeline.