<article><p class="lead">Turkey's Azeri gas receipts through the Trans-Anatolian pipeline (Tanap) early this year have already surpassed January-March 2020, judging by yesterday's comments by Turkish energy minister Fatih Donmez.</p><p>Turkey has imported 9.4bn m³ since the beginning of the line's commercial operations, Donmez said.</p><p>This suggests flows through the line of around 1bn m³ so far this year, taking into account imports of <a href="https://direct.argusmedia.com/newsandanalysis/article/2180313">8.4bn m³ in total in 2018-20</a>, Azeri state-owned Socar's Turkish subsidiary said.</p><p>This would already be above the 941mn m³ in <a href="https://direct.argusmedia.com/newsandanalysis/article/2096955">January-March 2020</a>, according to the Azeri energy ministry.</p><p>Higher Tanap flows last year boosted overall Azeri exports to Turkey, which even surpassed Russian receipts in March-July. Turkish state-owned Botas holds a supply contract for 6.6bn m³/yr from Shakh Deniz's first development phase, which lapses this April, and a deal for 6bn m³/yr from the second development stage through Tanap. </p><p>Oil-indexed prices are on track to increase considerably in April-June from January-March, encouraging Botas to front-load its take this year. </p><p>The cost of Azeri gas from the first development phase of the Shakh Deniz field is expected to be around $193.53/'000m³ in the second quarter, above the $180.04/'000m³ this quarter, based on <i>Argus</i>' assessment of Turkey's long-term contract prices. But gas coming from the field's second development through Tanap is Turkey's most expensive source of pipeline supply, because of high transportation costs, market participants have said. </p><p>Donmez also reiterated the government's aim to <a href="https://direct.argusmedia.com/newsandanalysis/article/2155460">increase the country's storage capacity</a> to 11bn m³ by 2023.</p><p>And he added that Turkey's third floating storage and regasification unit, which will be located in the Gulf of Saros, will be operational this year, providing "more flexibility".</p><p>The project has been delayed <a href="https://direct.argusmedia.com/newsandanalysis/article/1679912">several times</a> and has faced public opposition because of environmental concerns. </p><p class="bylines"><i>By Eleni Charisi</i></p></article>
