TPT January 2009

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T urkey’s strategic importance is enhanced by its rich
history and land areas in both Europe and Asia. At
the doorstep of both North Africa and the Middle East,
urkey has historically been perceived and presented as an
economic, political, and cultural bridge between East and
West. Its geographic boundaries are bordered by no fewer
than 10 neighboring countries: Iraq and Syria to the south;
Russia, Ukraine, and Romania to the north (via the Black
Sea); Iran, Georgia, and Armenia to the east; and Greece and
Bulgaria on the west.
Turkey’s population of 72.8 million is young and growing. The
country is one of the largest in Europe, and its economy is the
16th largest in the world. The US Department of Commerce
(DOC) has identified Turkey as one of the ten most promising
emerging economies, and a recent World Bank study also
declared Turkey one of the ten countries most likely to enter
the top tier of the world economy.
Today’s Turkey, modern and open to the world, follows
a liberal economic policy in accordance with its political
structure. Increased investment in Turkey’s communications,
transportation, and energy networks is a high priority so that
the country can meet modern global standards. Foreign
suppliers have to assume much of the financial and operating
risk, but the potential rewards are great. Sectors where multi-
national firms have opportunities in Turkey include aircraft,
construction, oil, gas and water pipelines, and automotive.
Turkey’s strategic location is a huge advantage for foreign
companies that are willing to work with their Turkish partners
to establish projects and distribute products into larger regional
markets and pursue joint venture infrastructure efforts.
A large number of Turkish oil and gas pipelines are either
underway or currently in the planning stages:
Baku-Tbilisi-Ceyhan Pipeline
Baku-Tbilisi-Ceyhan (BTC) Pipeline is the first direct pipeline
to deliver crude oil from the Caspian Sea to the Mediterranean
without crossingRussian soil or passing through the Bosphorus
or Turkish Straits. The 1,100-mile pipeline cost nearly
$4 billion to build. The line is estimated to have a peak capacity
of more than one million bbl/d, and Turkey is expected to earn
between $140 and $200 million per year.
Kirkuk-Ceyhan Pipeline
Turkey’s port of Ceyhan is also the destination for oil exports
from northern Iraq in the Kirkuk-Ceyhan oil pipeline. The 600-
mile dual pipeline consists of two parallel lines that have a
maximum throughput of around 1.6 million mbbl/d.
Bosphorus Bypass Options
The 17-mile long Bosphorus Straits, only a half mile wide at its
narrowest point, is one of the world’s busiest shipping lanes.
One project that was expected to increase oil transit through
the Bosphorus is the Russian-backed Baku-Novorossiysk
Pipeline (Northern Route Export Pipeline), a 990-mile pipeline
that transports oil from Kazakhstan’s Caspian Sea area oil
deposits to the Russian Black Sea port of Novorossiysk. The
pipeline, built by the Caspian Pipeline Consortium (CPC),
delivered up to 650,000 bbl/d of oil (based on 2006 figures).
Samsun-Ceyhan bypass
Another project currently underway is the Samsun-Ceyhan
bypass, which will transport oil from Turkey’s Black Sea port
of Samsun to Ceyhan on the Mediterranean coast. Once
completed, the pipeline is predicted to decrease tanker traffic
on the Bosphorus. The 350-mile pipeline is expected to be
fully operational by 2010, with expectations of 1 million bbl/d.
Source – Energy Information Administration:
Selected Gasfields and Pipelines Delivering Natural Gas to Europe (U)
775011AI (G00747) 8-06 UNCLASSIFIED
Shah-
Deniz
N O R T H
AT L A N T I C
O C E A N
Norwegian Sea
Barents
North
Sea
Baltic Sea
M e d i t e r r a n e a n S e a
Black Sea
Persian
Gulf
Kara Sea
Caspian
Sea
Aral
Sea
Sea
Germany
Czech
Rep.
Neth.
Austria
Slo.
Italy
Greece
Bulgaria
Serbia
Romania
Mol.
Hungary
Slov.
Poland
Rus.
Belarus
Ukraine
R u s s i a
Ka z a k h sta n
Uzbekistan
Turkmenistan
Afg.
Tu r k e y
Azer.
Georgia
Norway
United
Kingdom
France
Bel.
Moscow
Minsk
Paris
Vienna
Kiev
Ankara
Tbilisi
Baku Ashgabat
London
Berlin
Prague
Tashkent
Statfjord
Troll
Yamburg Zapolyarnoye
Urengoy
Medvezhye
Karachaganak
Shatlyk
Karadurun
Gazli
Dauletabad
Shurtan
North European
Gas Pipeline
Blue Stream
Nabucco
Greece-Italy
Interconnector
Turkey-Greece
Interconnector
South Caucasus
Pipeline
Central Asia-Center
Ukhta
Yaroslavl’
Bacton
Zeebrugge
Chazelles
Lyon
Milan
Otranto Komotini Istanbul
Karacabey
Tuapse
Erzurum
Samsun
Novyy Urengoy
Primorsk
Volkhov
Orenburg
Gasfield
Existingpipeline
Pipelineunderconstruction
Proposed/plannedpipeline
Selectedpipeline
0 250 500 750Kilometers
0 250 500 750Miles
Key Components of Southern Gas Corridor
From Caspian Sea to Europe (U)
Pipeline . . . . . . . . South Caucasus Pipeline
Length . . . . . . . . . 800 km
Capacity . . . . . . . . 16-20 billion cubic meters (bcm)/year
Cost . . . . . . . . . . . $1 billion
Status . . . . . . . . . . Under construction; completion scheduled by yearend. Operations begin upon
completion of Turkey’s connecting link from Georgian border to Erzurum, expected
by early 2007.
Pipeli e . . . . . . . . Turkey-Greece Interconnector
Length . . . . . . . . . 280 km
Capacity . . . . . . . . 8-12 bcm/year
Cost . . . . . . . . . . . $300 million
Status . . . . . . . . . . Under construction; completion scheduled for 2006-07.
Pi
L
Capacity . . . . . . . . 8-11 bcm/year
Cost . . . . . . . . . . . $1 billion
Status . . . . . . . . . . Bilateral governmental agreement signed. Feasibility study completed by Italian firm
Edison. Financing not yet completed. Construction could begin by 2008 with pipeline
completed by 2009-10.
Pipeline . . . . . . . . Nabucco
Length . . . . . . . . . 3,400 km
Capacity . . . . . . . . 25-30 bcm/year
Cost . . . . . . . . . . . $5.5 billion
Status . . . . . . . . . . Five transit countries signed agreement with EU in June 2006 to accelerate
construction. Final investment decision sought by yearend 2007 with construction
to start in 2008. Capacity of 8-13 bcm is targeted for 2011, expanding to 25-30 bcm
by 2020.
Boundary representation is
not necessarily authoritative.
Turkey: the confluence of trade
between Europe and Asia
Status of Natural Gas Pipeline Projects in Turkey
Project Status Length (miles) Max. Capacity (Bcf/y)
Blue Stream In operation 750 565
Iran-Turkey Pipeline In operation 750 495
South Caucasus Pipeline Under construction 430 700
Turkey-Greece Interconnector Under construction 186 407
Nabucco Proposed 2,050 460-1,100
Egypt-Turkey Pipeline Proposed NA NA
energy projects – a key to investment
Energy projects – a key to investment