Russian gas deals at risk as bids rejected

ISTANBUL - Reuters

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Turkey’s Energy Market Regulation Association (EPDK) started to return applications of the firms that applied to Gazprom to replace state-run Botaş, which is scheduled to cancel its ongoing deal for 6 billion cubic meters, as the 24 companies could not yet reach an agreement with the Russian company.

Currently only two companies, Bosporus Gas and Akfen, have signed a memorandum of understanding with Gazprom to complete application documents asked by EPDK. Since no other companies could sign a memorandum of understanding with the Russian gas provider, EPDK started to return the applications to firms yesterday. 

The Turkish Energy Ministry announced in September that domestic private companies could buy gas from Gazprom’s Westline because Botaş decided to end a 26-year contract over a price dispute. A total of 26 companies, including Austria’s OMV and Turkey’s Aygaz, Zorlu, Demirören and Turcas had applied for a license to transfer 4 billion cubic meters (bcm) of natural gas through the West Pipeline, according to an EPDK statement Oct.23. 

A representative of a bidding company that failed to meet the deadline by Dec. 9 said on condition of anonymity, “It is not that easy to renew a contract that values for not less than $3 billion in such a short period of time.” 

Bosporus Gas and Akfel, which signed MOU with Gazprom and completed the documents submitted to EPDK, have asked for additional time for companies to sign the contract with the Russian provider.