2007年-世界发展银行全球_Turkey___Gas_Sector_Strategy_102页_835kb

Summary of ESMAP Technical Paper 114/07: Turkey - Gas Sector Strategy

Core Content

This document outlines a strategy for modernizing and liberalizing Turkey's natural gas market, aligned with the objectives of the Natural Gas Market Law (NGML) of 2001 (Law No. 4646). The goal is to transition the market toward a more competitive, transparent, and efficient structure by 2010, referred to as "Structure 2010". The strategy focuses on three key functions: buying, selling, and transit, and suggests necessary reforms in legislation, industry structure, and market mechanisms.

Main Views

• Purpose of the Strategy: To enable Turkey to develop a competitive, financially sound, and transparent natural gas market by modernizing its current structure.
• Challenges: The existing vertically integrated and monopolistic structure of the gas sector, particularly through BOTAS, has hindered progress. The lack of competition, cost transparency, and the presence of a monopoly in gas imports and transit have been key obstacles.
• Transition Path: A phased and integrated approach is proposed over an eight-year period, starting from 2004 and ending in 2012, to move toward a competitive market.

Key Information

1. Strategic Objective

The strategic objective is to:

• Expand the use of natural gas in an increasingly competitive domestic wholesale market.
• Maximize Turkey's opportunities in gas transit.
• Appropriately manage the medium-term supply overhang.
• Minimize the state's future contingent liabilities by shifting risk to the private sector.

2. "Structure 2010": A Framework for Modernization

"Structure 2010" is the envisioned modernized market structure. It involves:

• Functional unbundling of BOTAS into separate legal entities for importing, transmission, storage, and wholesale supply.
• Wholesale competition as the first step toward a competitive market.
• Gas transit as a major opportunity for the sector, especially for foreign gas moving from the Caucasus and Middle East to Europe.

3. The "Buy" Function

• The monopoly of BOTAS in gas imports should be ended to introduce real competition.
• Reducing BOTAS' share of imports to 20% by 2009 is not feasible; instead, intermediate targets are suggested.
• The focus should be on fair competition, not on specific market share targets.
• Gas release programs are proposed as a better mechanism than contract transfers to introduce competition without disrupting upstream contracts.

4. The "Sell" Function

• Wholesale competition is essential for a competitive retail market.
• The NGML's provision to reduce BOTAS' share to 20% is unrealistic and should be replaced with a more flexible approach.
• A gas release program is suggested to gradually introduce competition without affecting existing supply contracts.

5. The Transit Function

• Turkey's strategic role in gas transit is emphasized as an economic and security opportunity.
• BOTAS should act as a transmission entity, not a merchant company, to facilitate transit.
• The law should allow flexible participation in transit by other companies, provided they do not interfere with the national transmission network.
• Modern incentive regulation is recommended to improve operational efficiency in BOTAS.

6. Legislative Changes

• The NGML should be amended to allow for:
  • Separation of functions and accounts for BOTAS.
  • Wholesale competition and third-party access to pipelines.
  • Flexible transit policies and clear control limits for state-owned suppliers.

7. Managing the Transition

• A carefully phased program is required to ensure smooth transition.
• Early policy statements should be issued to guide industry players and regulators.
• Legislative reviews and NGML amendments should be conducted with input from various stakeholders.
• A gas consultative body is recommended to provide advisory support during the transformation.
• A change champion at the undersecretary level is suggested to mediate between government, EMRA, and BOTAS.
• Technical assistance is needed to support the implementation of gas release, market design, and new import schemes.

Conclusion

The strategy emphasizes the importance of market liberalization, functional unbundling, and legislative flexibility to enable a competitive and efficient gas market in Turkey. It proposes a structured transition plan with specific steps for each function and timeframe, aiming to align the Turkish gas sector with international best practices and enhance its role in regional energy trade.