Adds more details after official statements and updates volume based on Erdogan's statements
Turkey has made a commercial-scale gas discovery in the Black Sea that could come on line as early as 2023, Turkey's president Tayyip Erdogan said today.
The find — in what has been dubbed the Tuna-1 field — is about 170km offshore and could contain about 320bn m³ of commercially viable gas, Erdogan said.
The field could hold 800bn m³ of technically accessible gas, according to a source familiar with the matter.
The discovery was "the biggest gas discovery of Turkey's history", Erdogan said.
The discovery was made using the survey vessel Fatih, which sailed from Zonguldak in late July, tracking data show. The vessel started drilling activities in the region on 20 July.
Turkey aims to start using gas coming from the Black Sea in 2023, Erdogan said. The country will immediately start drilling detection wells, and after determining the production concept will move on with construction works, he said.
And data obtained from the well could indicate possible additional gas discoveries in the same region, he said.
Drilling activities will continue in the area, Erdogan said. "There is no stopping [...] until we become a net exporter in energy," he said.
Turkish energy minister Fatih Donmez also said that based on the technical studies, the gas quality is believed to be high, which could have a positive effect on costs in the future.
The new gas discovery, if it enters production, could substantially cut Turkey's dependence on gas imports.
Turkish import demand fell considerably last year, driven by a sharp drop in power-sector gas burn. Combined consumption fell to 45.3bn m³ from 49.2bn m³ in 2018. Gas imports — including pipeline deliveries from Russia, Iran and Azerbaijan, as well as LNG — meet about 99pc of the country's gas demand.
The rapid depreciation of the Turkish lira against the US dollar in recent years has lifted gas import costs, leaving gas uncompetitive with coal and renewables. Russian imports fell most sharply, while pipeline receipts from Azerbaijan and LNG imports increased their share of the country's supply mix.
The newly discovered field is located near Romania's deepwater Neptun field, which is estimated to hold 42bn-84bn m³, with potential offtake of 6.3bn m³/yr. Neptun was discovered in early 2012, but has yet to be developed. OMV Petrom — which holds a 50pc stake in the field — has postponed taking a final investment decision on the field this year. The other half is held by ExxonMobil, although the firm is seeking to divest its stake.
