With the Iran - Turkey - Europe Natural Gas Pipeline Project (ITE), it is aimed to transport the Iranian- and Turkmenistan-origin natural gas via Turkey to Europe. For transit passage of the Iranian natural gas via Turkey, the Ministry of Oil of the Islamic Republic of Iran and the Ministry of Energy and Natural Resources of the Republic of Turkey signed a “Memorandum of Agreement” on 17 November 2008.
The agreement on the project, which started in August 2011, provides that Turkey can purchase gas from the pipeline when it needs gas. The length of the pipeline is approximately 5,000 km.
The length of the pipeline within the territories of Turkey is 1,789 km. As per the project, the quantity of gas to be transported to Europe annually has been determined at 35 billion cubic meters. Turang Transit Taşımacılık A.Ş. has obtained the “Natural Gas Pipeline Certificate”, with concession no. BB/TRG/4476, valid for 30 years, by the decree of the Council of Ministers, dated 26.08.2010 and no. 2010/882, as per the articles 6 and 32 of the Petroleum Law, to build the section of the pipeline between the borderline of Bazargan, Iran / Doğu Beyazıt Turkey and the borderline of İpsala, Edirne, Turkey / Greece for transportation of the Iranian- and Turkmenistan-origin natural gas via Turkey as far as Germany. The Turkey section of the ITE Natural Gas Pipeline will begin from the borderline of Turkey and Iran, pass through the provinces of Ağrı, Erzurum, Erzincan, Gümüşhane, Sivas, Yozgat, Kırşehir, Kırıkkale, Ankara, Eskişehir, Bilecik, Kütahya, Bursa, Balıkesir, Çanakkale, Tekirdağ, İpsala/Edirne and terminate on the borderline with Greece.
It is known that oil accounts for 36.4%, natural gas 23.49%, coal 27.8%, nuclear 5.95% and hydroelectric sources 6.35% of the total energy consumption in the world.
The three basic factors determining the energy demand of the countries which reflects the level of development of the countries are the population increase, the economic development and the technological advancement.
The increase in the world population and the technological advancements indicate that the energy consumption will increase each year. The total proven reserve of natural gas is 187.6 trillion m³, while the production is 3,193 billion m³/year. Being one of the most rapidly growing energy markets in the world, Europe is also the largest natural gas market of the world. Natural gas is supplied to Europe from Russian Federation in the east, Algeria in the south and Norway in the north-east.
Turkey is a natural corridor in the transportation of the natural gas produced in the Caspian and Central Asia regions and the Middle East to the EU market by pipelines. According to the data released by the International Energy Agency (IEA), Europe will need to purchase additional natural gas of 79 billion m³/year from Russia, 51 billion m³/year from the Central Asia, 157 billion m³/year from the Middle East, 136 billion m³/year from the West and North Africa and 18 billion m³/year from Trinidad + Tobago, totaling 441 billion m³/year in 2030.
Importance of the Project For Turkey
Neighboring the countries and regions which own 65% of the oil reserves and 70% of the natural gas reserves, Turkey is an energy corridor between the producers and consumers of the reserves.
That Turkey has the option to purchase natural gas from the Iran-Turkey-Europe Natural Gas Pipeline when needed will provide a more comfortable maneuver space to Turkey in the importation of the natural gas. This will have a positive effect on the gas prices.
Besides the incomes from the passage of the natural gas, the Project will increase the international transportation and trade volume of the private companies operating in the country. This will also increase tax revenues of the government. Connection of the energy importing west and the energy rich east by pipelines via Turkey will enhance the energy corridor between the East and the West on the territories of Turkey. This will earn Turkey a very important advantage in the socioeconomic development and enhance the geopolitical importance of Turkey.
The project will enhance the competitive and negotiation power of Turkey in the process of accession of Turkey to the EU and contribute to overcoming of the confidence crises between the two parties and to solving of various political problems.
When realized, the project will stabilize the high and frequently changing energy prices in Europe, make the market parameters more transparent and become a life blood in the meeting of the ever growing energy demand of Europe. This will enhance the economic and political position of Turkey.
Acting as an energy bridge between Europe and Iran, Turkey will earn transit fees and taxes from these lines and provide new jobs to the people thanks to the construction of the pipeline.
Gaining a strong position in the energy corridor between the west and the east at the beginning of the third millennium, Turkey will be able to grow its economy more rapidly. Economic growth will strengthen the political position of Turkey