HomeMediaLatest NewsWhy does Russia need a gas hub in Türkiye

Why does Russia need a gas hub in Türkiye

07 September 2023

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, President of the Institute for Energy and Finance, commented to Tinkoff Journal on the gas hub creation in Turkey.

- Most likely, Turkey will launch an electronic trading platform where it will be possible to buy gas from different suppliers and there will be a lot of buyers and sellers.

- Russia will be able to participate in this, as well as other countries and companies. But I don't think that the role of Gazprom and Russia will be exclusive. Turkey has many suppliers of pipeline gas: Algeria, Iran, Azerbaijan. The idea for Russia is that it will supply more gas to Turkey, and Turkey will sell more gas to Europe. It is important for Russia to get additional exports.

But additional gas pipelines from Russia to Turkey and the expansion of existing ones are a matter of demand and long—term agreements, that is, the provision of contracts to pay for construction in the future. It's risky to build a gas pipeline without understanding how it will pay off.

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