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Gazprom will have a gas hub in Istanbul

The idea of a gas hub in Turkey was first launched by Russian President Vladimir Putin in October 2022

Nov 3, 2024 08:52 208

The idea of a gas hub in Turkey was first launched by Russian President Vladimir Putin in October 2022 after the explosions of the “Nord Stream” gas pipeline.

Turkey's negotiations with Russia to conclude a gas hub agreement are underway. The hub in Istanbul can start functioning in 2025, BGNES reminds.

This is what Turkish Energy Minister Alparslan Bayraktar said.

„We have created a strong trading infrastructure that can be operational as early as 2025 in the financial center of Istanbul within the framework of the partnership between Botash and Gazprom,” Bayraktar told "Miliet".

„We sent (Russia) a memorandum of understanding,” Bayraktar said, adding that Russian President Vladimir Putin had told his Turkish counterpart Erdogan that he would give instructions to Gazprom on the gas hub. Bayraktar also announced that an Istanbul Gas Index will be established, meaning that gas prices will be set in Istanbul and Russia will sell its gas at prices based on this index.

Turkey, which has announced its ambition to become a gas hub by increasing both imports and exports, is in the process of negotiating supply deals with producers and consumers.

During Erdogan's visit to Russia for the BRICS summit in October, Turkish and Russian leaders continued to discuss ways to develop the potential and specifics of the project to create a gas hub in Turkey.

The idea of a gas hub in Turkey was first floated by Russian President Vladimir Putin in October 2022 after the explosions of the “Nord Stream” gas pipeline.

Turkish President Recep Tayyip Erdogan has expressed considerable interest in the idea as Russia seeks to replace lost sales to Europe. The country's efforts to become a gas hub resumed in September 2023 when Putin and Erdogan met in Sochi. During the meeting, there was mention of a road map between Russian energy company Gazprom and Turkey's Botash Oil Pipeline Corporation, with the next step being the creation of a joint working group.