Türkiye Pursues Strategic Gas Hub Partnership with Russia

Ankara, The Gulf Observer: Türkiye’s discussions with Russia to establish a gas trading hub are progressing, with Turkish Energy Minister Alparslan Bayraktar signaling the potential for operations to begin as early as 2025. The envisioned hub, set to be located within the Istanbul Finance Centre, would position Türkiye as a key regional energy hub with the cooperation of Turkish energy company BOTAŞ and Russia’s Gazprom.

In an interview with Turkish daily Milliyet, Bayraktar detailed the plans, explaining that Türkiye has already developed a robust infrastructure capable of supporting the hub’s launch. He revealed that a memorandum of understanding has been forwarded to Russia, and that Russian President Vladimir Putin has communicated to Turkish President Recep Tayyip Erdoğan his intention to instruct Gazprom to engage with the project.

Bayraktar also noted that establishing an “Istanbul Gas Index” will allow gas prices to be determined directly from Türkiye’s emerging energy hub, with Russia expected to sell its gas at prices based on this index. The creation of a regional index signifies a significant move towards energy independence and influence, as it allows Türkiye to set regional gas prices and potentially stabilize energy costs across the region.

Türkiye’s goal of evolving into a prominent gas hub aligns with its broader ambition to increase both imports and exports of energy, further diversifying its role in the global energy market.