Gazprom Secures Long Term Gas Export Deal in Turkey

Gazprom has announced a long-term deal to export natural gas to private companies in Turkey, securing a growing market for the Russian gas export monopoly as it faces declines from its core consumers in the European Union.

Turkey's energy market regulator gave private energy companies Akfel, Bosphorus and Kibar licences to import gas from Russia's Western Line over a 30 year period

It also granted the Bati Hatti natural gas company a licence to import gas from the same pipeline for 23 years.

The four companies had previously agreed with Gazprom to import 6 bcm of natural gas a year on the Western line, which runs through Ukraine, Romania and Bulgaria to Turkey, with an annual capacity of 14 bcm.

"The deal is very important for Gazprom. Turkey has always been a significant and stable partner for us," an official for Gazprom Export, the company's export arm, told Reuters.

Natural gas is key to Turkey's economic growth as the majority of its electrical supply is gas powered.

There has been a one-year impasse in gas trade between Gazprom and Turkish companies after Turkey's state gas company Botas did not renew an expiring 25-year contract at the end of 2011 due to a pricing dispute. Business has continued in the meantime only on a short-term basis.