Minister says Turkey regional gas hub will be operational by 2025

The Turkish Energy Minister said that Turkey and Russia are currently in talks to reach a deal for a hub in Istanbul. This hub could start operating in 2025.

The Turkish government, which announced its intention to become a hub for gas by increasing imports and exports is currently negotiating deals with both producers and consumers.

In an interview published by the Turkish newspaper Milliyet on Friday, Energy Minister Alparslan Bayraktar stated that "we have established a strong infrastructure" for a trading system which could be operational as early as 2025 at Istanbul Finance Centre.

Bayraktar stated that "we sent (Russian) a memorandum-of-understanding", adding that Russian President Vladimir Putin had told his Turkish counterpart Tayyip Erdoan that he would give instructions to Gazprom regarding the gas hub.

There will be an Istanbul Gas Index. This means that gas prices will be set in Istanbul. "Russia will sell its gas at a price determined by the Istanbul Gas Index," Bayraktar stated.

In 2022, Russia proposed to set up a hub for gas in Turkey in order to replace sales lost to Europe. This would play into Ankara’s desire to serve as an energy exchange for countries that are in need of it.

(source: Reuters)