Minister of Energy Fatih Donmez speaks during a ceremony in Istanbul to mark the completion of the sea part of the TurkStream gas pipeline, in Turkish capital.
ISTANBUL Reuters - Turkey has just signed a three-year, 1 billion cubic metres of natural gas to Azerbaijan and is making significant progress in securing additional natural gas supply, said Energy Minister Fatih Donmez on Friday.
Turkey's record demand for natural gas this year is forcing it to upgrade purchases on a buoyant spot market as it scrambles to renew long-term contracts expiring this winter.
Donmez said the deal was for delivery of 11 bcm of gas in the Baku-Tiflis - Erzurum pipeline till end 2024, dismissing what he said were efforts to create perception that Turkey was facing an energy problem amid a global energy bottleneck.
As winter approaches, continuing negotiations on meeting the probable increase in natural gas demand are progressing positively, he said in a written statement.
Authorities in the countries from which we procure gas have declared that they will increase the gas offered to Turkey, he said, citing the deal with Azerbaijan.
One of the largest gas importers in Europe, Turkey depends on pipeline gas from Azerbaijan, as well as Russian and Iran, and liquefied natural gas imports from Nigeria, Algeria and spot markets.
It had four long import contracts expiring this year totalling 16 bcm annually, which generated an average of 18 bcm (USD) in 2014.
Azerbaijan's new energy minister Parviz Shahbazov told Reuters on Wednesday that Turkey signed a deal with Azerbaijan to supply gas from its giant offshore Sah Deniz I field. In April the contract ended, Turkey halted gas deliveries from Shah Deniz I to Azerbaijan.
Donmez rejected what he said about claims that Turkey was buying gas at expensive rates and he also denied reports that state energy companies Turkiye Petrolleri and BOTAS would be sold off.