Turkey has found huge amounts of gas in the Black Sea, a finding that could help the country cut its dependence on energy imports if the gas can be commercially extracted.
President Tayyip Erdogan told energy professionals on Wednesday he’ll announce “good news” on Friday that will herald a “new duration” for Turkey – responses which drove up shares in Turkish energy firms and lifted the lira using this week’s record low.
He offered no details but the sources said he was referring to a gas discovery within the Black Sea, and one supply stated the scale for the reserves could potentially meet Turkey’s energy needs for 20 years.
Turkey’s drilling ship Fatih is operating since belated July in an exploration zone known as Tuna-1, about 100 nautical miles north of the coast that is turkish the western Ebony Sea.
“There is a gasoline that is normal in to the Tuna 1 well,” the source said. “The expected reserve is 26 trillion foot that are cubic 800 billion cubic metres, and yes it meets approximately 20 years of Turkey’s needs.”
Nevertheless he cautioned so it could take seven to 10 years to begin production, and predicted investment expenses at between $2 billion and $3 billion.
Officials, including Energy Minister Fatih Donmez, have given no details of Friday’s announcement, saying Erdogan will explain the “surprise” himself.
Turkey’s energy and presidency ministry had been maybe not instantly available to comment in the scale of this find.
Turkey, which is almost entirely reliant on imports to satisfy its energy demands, has been exploring for hydrocarbons in the Black Sea and in the Mediterranean – where its survey operations in disputed waters have drawn protests from Greece and Cyprus.
In the event that scale of the Ebony water reserves are confirmed, they would represent a discover that is major fields containing 1-2 trillion cubic feet are usually developed. However analysts say Turkey could face infrastructure that is additional in breaking to the market.
“Even if there is certainly an understand that is legitimate is developed, it would just take four to six years to access the production period,” stated John Bowlus, editor-in-chief of Energy Reporters.
“Gas demand and prices are historically low and few are investing in new production,” that may tighten up supply in 3-4 years, he said. “If developed quickly, this gas could come on the marketplace at an optimal time.”
Any reduction in Turkey’s energy import bill, which stood at $41 billion 12 months that is last vendors such as Russia and Iran, wouldn’t typically only improve government finances but also help relieve a chronic current account deficit which puts stress on the lira.
Even though such a prospect is still distant and uncertain, the lira strengthened on after Erdogan’s cryptic opinions, as traders anticipated a effect that is positive wednesday.
One banker stated the market response showed that Turks, whom possess been selling lira for foreign currency in recent months, had been looking for a explanation to transform back in the lira, but you may not depreciate further that they also want become yes. Turkey has found huge amounts of gas in the Black Sea.