Turkish Minister: Anatolia only feasible gas route for Israel, Greek Cyprus

Hürriyet Daily News

Turkey awaits normalization with Israel to discuss energy projects, as Israel’s energy plans would only be reasonable if Turkey was involved, Turkish Energy Minister has said

Turkey is not indifferent toward Israel’s energy projects for transferring the Eastern Mediterranean natural gas and oil to the international markets, since the resources would be not be feasible unless they were transferred through Turkey, Turkish Energy Minister Taner Yıldız said.

“It is the same for Greek Cyprus,” Yıldız told reporters yesterday. “It will have no benefit to your people if you say ‘I will do it even if it is expensive.’ I’m telling this both for Israel and Greek Cyprus,” he said, adding that the projects would be meaningful only if the right move is made.

But, discussing energy deals before the restoration of ties between Turkey and Israel has been finalized would be impossible, according to the minister.

“As relations normalize in the future, then we can discuss if natural gas could be transferred by a pipeline through Turkey,” the minister said.

Turkey dismayed at lack of US partnership on second nuclear plant: Minister

Hurriyet Daily News

Turkey expected to form a partnership with the United States to build Turkey’s second planned nuclear plant, Energy Minister Tamer Yıldız told daily Hürriyet in an interview published April 6.

“If I don’t build the nuclear plant with the U.S., which strategic project will I do? Will I sell tomatoes and peppers?” Yıldız said, adding that Turkey had made a proposition to the “highest officials” in Washington about participating in the tender.

“They told us that the project was not feasible. It may not be feasible, but it is strategic. [Making] this strategic contribution falls upon Washington,” he said.

China and a Japanese-French joint venture are competing to build the plant, which will be located in the Black Sea province of Sinop, Yıldız said April 4. The first plant in Akkuyu, in the Mediterranean province of Mersin, will be constructed by Russia’s Rosatom company.

Turkey: Does Ankara Hold the Key to Ending Cyprus Financial Woes?

by Justin Vela | Eurasianet.org

Some 60 trillion cubic feet of gas reserves around the divided island of Cyprus, a find possibly worth hundreds of billions of dollars, could find its way to Turkish and European markets through Turkey. Combining a deal of exporting natural gas from Cyprus with delivering water and electricity to the island may benefit Ankara to mediate a settlement for the divided island. (Photo: Council of Europe)

Turkey’s potential as a regional energy hub could help alleviate the financial turmoil hitting the divided Mediterranean island of Cyprus, analysts say. But before any steps are taken, Ankara would like to see movement toward a resolution of the decades-long conflict between Greek and Turkish Cypriots. And that is a long shot over the short term.

The International Monetary Fund’s 1-billion-euro (over $1.28 billion) contribution to a 10-billion-euro (over $12.8 billion) rescue package, announced on April 3, may ease concerns that the meltdown of Cyprus’ financial system could trigger a major crisis for the euro zone, but Greek Cypriots still have an incentive to seek alternative ways of stimulating their economy, observers note.

Turkey, capitalizing on its growing role as a regional energy hub, has offered options. But its 38-year-long territorial conflict with Cyprus over the self-declared Turkish Republic of Northern Cyprus could prove an insurmountable barrier to a solution. The major area of possible cooperation is over hydrocarbon deposits in the waters off Cyprus. These resources -- estimated to include some 60 trillion cubic feet of gas reserves, a find possibly worth hundreds of billions of dollars -- are deeply contentious. Greek Cypriots have granted exploration licenses to international energy companies without consultation with northern Cyprus.

Turkey privatisations: back on track

by David O'Byrne | Financial Times

Turkey’s ambitious privatisation programme scored another significant success Friday with the successful sale of four more of the country’s regional power distribution companies for a total of $3.46bn.

The sale of the four was completed after more than six hours of open bidding between 16 companies.

The two largest power distributor on the auction block – Toroslar EDAS which distributes in the Adana region and AY EDAS which distributes on the Asian side of Istanbul – were sold for $1.7bn and $1.2bn respectively to Enerjisa, a joint venture between Turkey’s Sabanci Holding and Germany’s E.ON.

The auction win comes just four months after E.ON bought out the 50 per cent stake in Enerjisa previously held by Austrian power group Verbund.

Speaking to reporters, Selahattin Hakman, head of Sabanci’s energy arm, said Enerjisa’s ambitions had broadened since the arrival of E.ON.

Enerjisa already owns Baskent EDAS which distributes power in Ankara and now holds close to the 30 per cent maximum share any individual company can hold in the Turkish power distribution sector.

Of the other two regional distributors that were also on auction, Dicle EDAS which distributes in the Diyarbakir region was sold to the Iskaya-Dogu consortium for $387m and Vangolu EDAS which distributes in the Van region was sold to the Turkerler construction group for $118m.

Birol: Nuclear power key to Turkish energy future

Today's Zaman

Turkey should build “as much nuclear power as possible” to help meet its growing energy needs, International Energy Agency Chief Economist Fatih Birol said in Brussels on Sunday night.

Speaking at the German Marshall Fund's Brussels Forum, the economist qualified his endorsement by saying that nuclear power should only be embraced “with attention given to seismic risks” that could unleash a Fukushima-style accident on Turkish soil.

Birol was unwavering in his endorsement however, saying that Turkey could employ the technology safely and use it to overcome its dependence on foreign fossil fuels. The argument that Germany and Japan are jettisoning the technology also didn't sway the economist, who was quoted as saying: “When we compare Turkey and Germany there are huge differences. In Germany, electricity demand won't even grow 1 percent this year. … But as for Turkey, demand is increasing very rapidly. From this perspective, Turkey must open nuclear power plants.”

His recommendation comes after Ankara's announcement this week that it will begin accepting bids for a newly proposed nuclear plant in the Black Sea province of Sinop. Birol's comments also come amid sustained criticism of Ankara's nuclear plans and a $25 billion nuclear facility planned for the southern province of Mersin, where activists say it faces an unacceptable risk of an earthquake.