Energy Industry
REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
TURKISH ENERGY INDUSTRY REPORT
AUGUST 2010 DECEMBER 2009
CONTENTS
1. 2. 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 Executive Summary Sector Overview Global Sector Oil Natural Gas Coal Nuclear The Domestic Sector Sector Overview Electricity Oil and Gas Coal Nuclear Main Players 3 4 4 5 5 6 7 7 7 8 12 13 14 14 14 16 17 19 20 25 26 27
2.2.6.1 Electricity 2.2.6.2 Oil and Gas 2.3 2.4 2.5 2.6 Sector Outlook SWOT Analysis Investment Opportunities Sector Establishments and Institutions
List of Figures Abbreviations
2
1.
Executive Summary
The Turkish energy sector is widely seen as the most promising and attractive field of investment in the Turkish economy. The market experiences a transition into a competitive market structure in order to attract private sector investments. The energy market is witnessing rapid growth and liberalization process with the recent privatizations, licensing tenders and strategic partnerships. The sector has been remarkably active recently and offers major opportunities to investors. Energy consumption in Turkey is low when compared with Western European countries. However, the large, young and increasingly urban population together with expected industrial development potential in Turkey represents a significant growth potential. Currently, Turkey is a major energy importer, as the increase in its energy consumption has outpaced domestic production. Substantial investment in the energy sector will be required in near future in order to meet the increasing demand in Turkey. The energy consumption in Turkey has reached a level of 102 million tons of oil equivalent, or 1,420 kg of oil equivalent per head in 2008 (which is still below the level of developed countries) with an increasing trend between 2004 and 2008. Given the slowdown in the economy since mid-2008, the increase in energy consumption slowed from
Investment Support and Promotion Agency of Turkey
TURKISH ENERGY INDUSTRY REPORT
AUGUST 2010 DECEMBER 2009
CONTENTS
1. 2. 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 Executive Summary Sector Overview Global Sector Oil Natural Gas Coal Nuclear The Domestic Sector Sector Overview Electricity Oil and Gas Coal Nuclear Main Players 3 4 4 5 5 6 7 7 7 8 12 13 14 14 14 16 17 19 20 25 26 27
2.2.6.1 Electricity 2.2.6.2 Oil and Gas 2.3 2.4 2.5 2.6 Sector Outlook SWOT Analysis Investment Opportunities Sector Establishments and Institutions
List of Figures Abbreviations
2
1.
Executive Summary
The Turkish energy sector is widely seen as the most promising and attractive field of investment in the Turkish economy. The market experiences a transition into a competitive market structure in order to attract private sector investments. The energy market is witnessing rapid growth and liberalization process with the recent privatizations, licensing tenders and strategic partnerships. The sector has been remarkably active recently and offers major opportunities to investors. Energy consumption in Turkey is low when compared with Western European countries. However, the large, young and increasingly urban population together with expected industrial development potential in Turkey represents a significant growth potential. Currently, Turkey is a major energy importer, as the increase in its energy consumption has outpaced domestic production. Substantial investment in the energy sector will be required in near future in order to meet the increasing demand in Turkey. The energy consumption in Turkey has reached a level of 102 million tons of oil equivalent, or 1,420 kg of oil equivalent per head in 2008 (which is still below the level of developed countries) with an increasing trend between 2004 and 2008. Given the slowdown in the economy since mid-2008, the increase in energy consumption slowed from