Last Updated on 11/03/2023
The late war between Russia and Ukraine created an energy crisis that accentuated especially with the beginning of winter and climate changes. While the concerns in Europe are increasing, this seems to be an advantageous situation for Turkey to be the new natural gas and energy supplier of Europe.
Russia, Europe’s main supplier of energy and natural gas
Russia has always been a major source of natural gas, oil and coal imports for European countries. Due to this high reliance and the lack of other supplies, the winters of 2022–2023 and 2023–2024 may be the most difficult in Europe. Therefore, Turkey may also soon be able to assist in resolving Europe’s energy issue.
In 2021, the EU imported 155 billion cubic meters of gas from Russia, constituting 45% of its needs. Moreover, Russia supplied european countries with 46% of its coal imports and 27% of its oil needs in the same year. The EU has been working to lessen its reliance on Russia over the past ten years. However, in 2021 it paid €99 billion ($105 billion) to Moscow for the 66% of its energy needs.
Russia-Ukraine war’s impact on energy and natural gas supply in Europe
With the Russian invasion of Ukraine, the relationships between Russia and Europe entered in a continuous tended situation which affected trade relations as well.
Facing this situation, the majority of European countries started looking for a lasting replacement for Russian natural gas. On the other hand, despite its tense relations with Europe, Russia still wishes to continue selling natural gas to countries in southern Europe that are prepared to purchase it, including Hungary and several of the Balkan nations.
Turkey to be a new energy hub to Europe
In an effort to create the biggest energy hub for Europe, Russian President Putin suggested earlier to create a gas storage and distribution center in Turkey.
Turkey has been making strides to establish itself as a natural gas trading hub in an effort to compete with its northern neighbor. Though, Russia maintained its dominance in the European energy market during the past two decades. Turkey’s natural gas infrastructure and market both experienced fast growth in the 2000s, with new pipeline projects emerging as the EU’s demand for alternate supply sources rose.
Turkey could emerge as a major gas trading hub due to its high natural gas consumption and import volume, matured market,, and Istanbul’s Epias energy exchange. All of this suggests that Turkey might act as a mediator to appease both sides.
Effective actions have been taken
A very important step was made toward building a more strategic and powerful Turkey in matter of energy and natural gas. Ankara and Moscow are collaborating to create an energy hub on Turkish land. Therefore, Thrace will be the site to distribute Russian natural gas and liquefied natural gas (LNG) to Europe.
In fact, President Recep Tayyip Erdogan mentioned in a speech on Friday, that he had crucial discussions with Russian President Vladimir Putin on creating an energy hub in the European part of Turkey. He also stated his country’s important work on the nuclear power aspect with Turkey’s energy partners. He also mentioned that the country will reach an entirely new level of energy after adding nuclear power, which has a $20 billion investment.
Turkey’s important energy supply
Turkey has a financial worth of $81 billion and a 160 million ton oil equivalent energy supply.
Erdogan, stated that Turkish investments will continue until raising the country to the safest level in the sector of natural gas exploration. Moreover, Turkey has the 17th largest supply in the world. Therefore, it has been taking all necessary precautions to avoid the issues brought on by Europe’s energy crisis.
We should also mention that the Russia-Ukrain war brought advantageous opportunities for Turkey in matter of investment especially in the real estate sector. You can tak e a look at this article to know further details.
Experts from MEO Consultants evaluate the investment opportunities and weigh the advantages and disadvantages of each option. They also put on your hands an integrated analysis that helps you to estimate your investment revenue.
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