At the Botas Headquarters in Ankara Gazprom export and Avrasya A.S. have signed today the deal to supply gas from Russia to Turkey in amount of 500 mln cu m annually until 2021.

The signing of said deal ends up the first stage of the right transferring to sell gas by the state company Botas to the private companies within the gas market liberalization in Turkey.

“Turkey is an extremely important partner for us. Russian gas export volumes to Turkey annually increase. In 2004 gas supplies reached 14.5 bcm, in 2005 – more than 18 bcm and in 2006 – nearly 20 bcm. We are expecting that this number will reach 23 bcm in 2007. Turkey is the third largest Russian gas supplier,” said Sergey Kupriyanov, Press Secretary of the Gazprom Management Committee Chairman.

As he said Gazprom was a very reliable business partner not only in Turkey and in other foreign countries. 

“Our commercial company inviolately fulfills the deal commitments and in case of the unforeseen circumstances as we proved earlier, Gazprom will not refuse to supply additional gas volumes to Turkish market,” underscored Sergey Kurpiyanov.

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Russian-Turkish cooperation in the gas sector began in 1984 when the Turkish Government and the USSR signed the Agreement of gas supply to Turkey. Russia exported nearly 158.7 bcm of gas to Turkey since the start-up of Russian gas supplies to Turkey.

Gazprom and Turkish Pipeline Company Botas signed the Memorandum of cooperation in the gas sector on December 6, 2004. The document stipulates an opportunity of gas supply by Gazprom to Turkey straightly or via subsidiaries to the final consumers as well as participation in the projects of gasification, gas distribution, development of UGS capacities as well as gas and power generation capacities in Turkey.

Botas transports oil and gas, provides marketing research and supplies power generation resources.

In the frames of the gas market liberalization conducted in Turkey, on November 2005 Botas organized the tender on transferring a part of the existing contract as of February 18, 1998 to other companies.

The tender which closed on November 30, 2006 resulted in transferring a part of said deal by Botas to Shell Energy A.S., BosphorusGas A.S., Enerco Enerji A.S.and Avrasya Gaz A.S.

Pursuant to the document signed and accord achieved between Gazprom and Botas, Avrasya Gaz A.S. accepts the rights and obligations of Botas in a part of transferred gas.

Avrasya Gaz A.S. core business activity is natural gas marketing in the territory of Turkey.