Iran’s rocky road in the Turkish energy market

According to the exclusive report of Energy Press, Iran is one of Turkey’s gas suppliers, whose 25-year gas export contract will end in 2026. According to the announcement of the official authorities; During the 28 years since this gas contract, Turkey has imported more than 156 billion cubic meters of gas from Iran. Of course, the officials’ statements show the clear desire of both parties to extend this contract, which has a win-win result for both parties. This contract can strengthen the position of Turkey’s gas hub, because this country has always sought to lead the gas of the countries of the region to consumption or transit.

Also, based on recent data, Iran’s oil exports to Turkey resumed after 4 years, which promises a positive outlook for energy exchanges between the two sides. According to the statistics published by the European Statistical Center, Turkey has imported oil or oil products from Iran for the first time in the last 4 years. This country has imported 576 tons of oil or petroleum products from Iran in March this year and 485 tons in April, for a total of 1060 tons. This country last imported a cargo of oil from Iran in August 2020. But the question arises that despite a giant like Russia, how much maneuvering power does Iran’s oil have?

The heavy shadow of the Russians

Turkey is one of the major consumers of natural gas, and in 2023, Russia took the leading position with 42.2% of the country’s total gas imports, which amounted to 21 billion cubic meters. In addition to Russia, Azerbaijan, Algeria and Iran also export gas to Türkiye. Russia also significantly increased its oil supply to Turkey and reached 10.7 million tons in 2023. Therefore, Russia became the largest supplier of oil in this country and increased its share in the total import of oil and oil products to 51%.

In addition to oil and gas, Russia has become an important supplier of thermal coal to Türkiye. In 2023, coal exports from Russia to Turkey increased by 46% and reached a historical record of 27.5 million tons. The share of Russian coal in Türkiye’s total coal import is 70%, which is a record.

The main reason for the increase in energy supply from Russia to Turkey is the sanctions and restrictions of the European Union on Russian energy sources. This led to a significant decrease in exports to Europe and the redirection of some production to other countries, including Turkey.

Despite geopolitical changes and economic conditions, Russia will continue to play a key role in Turkey’s energy supply in the coming years. Considering the increase in energy consumption in Türkiye, deeper cooperation in this field is expected between the two countries.

Therefore, 2023 was an important year for energy relations between Russia and Turkey, which highlighted the importance of energy cooperation in the changing world order.

In 2023, Turkey was still dependent on foreign energy sources, especially natural gas and oil, which are vital for the country’s heating, power generation and industry sectors. Analysis of 2023 data from the Turkish Energy Market Regulatory Authority (EPDK) reveals interesting trends and challenges. According to the EPDK report, Turkey planned to import about 56 billion cubic meters of natural gas in 2023, but the actual import was 50 billion cubic meters. This happened because of the warm winter, which has reduced the demand for gas for heating.

The main gas exporters to Türkiye; Russia, Azerbaijan, Algeria and Iran. In 2023, Russia exported 21 billion cubic meters of gas, accounting for 42.2% of Turkey’s total imports and remaining its main supplier. Also, Azerbaijan, Algeria and Iran supplied 10.2, 6 and 5.4 billion cubic meters of gas to the Turkish market, respectively.