Liberalisation of Natural Gas Markets by Onur Demir

Author:Onur Demir
Language: eng
Format: epub
ISBN: 9789811520273
Publisher: Springer Singapore

Source: EMRA

The franchisees are allowed to sell or transfer their distribution network (as a whole) to a third party before the expiration of their licences (subject to the EMRA approval) insofar as the new purchaser is technically and financially eligible to be granted a new licence and agrees to all the terms and conditions of the agreement the seller had with the municipality. Lastly, in the event termination of an agreement becomes inevitable, a new tender is prepared by the EMRA pursuant to the terms of the terminated agreement inclusive of the predetermined USDC as the price-ceiling (NGML 2001 Art. 4/4g; Reg. No. 24925 Art. 31, 32). The latest amendment to the 2001 Law (Official Gazette No. 24390 Art. 114 dated 10 September 2014) authorises a joint corporation by the provincial special administration and the municipalities to perform the distribution activities in cities where tenders are offered three times with no interest at presence.

Turkey is an example of a country that has had a sufficient pipeline network constructed through franchise auctions executed by the EMRA since 2003. Turkey’s natural gas distribution networks have extended over 93,000 km with total investment of TRY15.1 billion (excl. VAT), almost triple the amount compared to that of TRY5.8 billion made towards the seven distribution regions before the 2001 Law (EMRA 2018a). Turkey’s distribution network has 318 entry points, 47 of which are being operated by BOTAŞ and 271 by private companies (IEA 2016, 113). To date, there are over 60 companies, joint ventures and other entities that distribute natural gas throughout Turkey some of which (e.g. Aksa Gaz Dağıtım A.Ş., Enerya Gaz Dağıtım A.Ş. and Akmercan Group) holding distribution licences for up to 20 regions. Between 2003 and 2017, the number of gasified cities increased from 7 to 78 (out of 81), whilst for three cities the tenders have concluded and winner companies are currently working towards completion of the respective networks for early 2019 (Map 4.3).

Map 4.3Natural gas distribution in Turkey. (Source: BOTAŞ)

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