Oil has been one of the main energy sources in Turkey, accounting for some 28% of the country’s total primary energy supply (TPES) in 2011. Turkey’s oil demand slightly increased from 637 kb/d in 2003 to 670 kb/d in 2012, although it dropped down from 678 kb/d in 2009 to 650 kb/d in 2010. The transport sector accounted for half of total oil consumption in 2010. Domestic oil production is in decline in Turkey, amounting to 45 kb/d or about 6.7% of total consumption in 2012.
In 2012, Turkey imported 712 kb/d, consisting of about 392 kb/d of crude oil and some 320 kb/d refined products. Around 39% of total crude oil imports came from Iran. Crude oil and petroleum products are mainly undertaken by tankers and two major international pipelines running through the country with a total annual handling capacity of 2.8 mb/d. In the country, there are four operational refineries with a total crude distillation capacity of around 610 kb/d.
Turkey meets its 90-day stockholding obligation to the IEA by placing a minimum stockholding obligation on industry. Under the relevant acts, refineries and fuel distribution companies are obliged to hold at least 20 days of product stocks based on the average daily sales of previous year, while eligible consumers that use more than 20,000 tonnes annually are required to hold 15 days’ consumption of each type of liquid fuel.
Turkey held some 61 million barrels of oil stocks at the end of January 2013, equating to 99 days of 2011 net-imports. Around 55% of total oil stocks are held in the form of crude oil. The use of emergency oil stocks is central to Turkey’s emergency response policy, which can be complemented by demand restraint measures.
The share of natural gas in the country’s TPES significantly increased at 32% in 2011. Turkey’s gas demand significantly increased from 0.7 billion cubic meters (2 mcm/d) in 1987 to 45.3 bcm (124 mcm/d) in 2012, while indigenous natural gas production totalled some 0.63 bcm in the same year. The transformation sector was the largest consumer of natural gas in 2011, representing about 48% of the country’s total gas consumption.
Russia was the largest supplier, representing 58% of total imports in 2011. Turkey has four international gas pipelines in operation with a total import capacity of some 46.6 bcm, and it has planned to diversify natural gas import pathways through constructing new major cross border pipelines and LNG terminals.
Key elements of Turkey’s overall gas security policy are diversifying long-term supply contract portfolio, forming an energy hub from Central Europe and the Middle East to Europe, increasing natural gas storage facilities, cutting back contractual supplies, and fuel switching to alternative fuels in power generations. Gas importers are obliged to hold gas storage capacity corresponding to 10% of their annual gas import. The country has also planed to oblige all power plants with fuel switching capacity to hold sufficient amount of secondary fuel such as diesels.
The transmission system operator, BOTAŞ, would take the lead in time of crisis under the supervision of the Energy Market Regulatory Authority. In case of a gas supply disruption in which responsible gas suppliers are not identified, the TSO will endeavour to curb gas consumption by reducing the contractual capacities of interruptible contracts and gas fired power plants which can switch to alternative fuels.