Turkey Discovers Large Gas Field in the Black Sea?

Turkey has discovered a large gas field in the Black Sea, two Turkish sources claimed, and the discovery could help reduce its dependence on energy imports if extraction at the site proves commercially viable. President Tayyip Erdogan told energy company leaders on Wednesday that he would announce 'good news' on "a new era" for Turkey.

He did not provide details, but sources said on Thursday that he was referring to the gas discovery in the Black Sea. According to one of them, the reserves in the newly discovered field may meet Turkey’s energy needs for the next 20 years. The Turkish ship Fatih has been searching for gas in the Tuna-1 area since the end of July, about 100 nautical miles north of the Turkish coast in the western part of the Black Sea.

– Natural gas has been found in the Tuna 1 basin. Expected reserves are 800 billion cubic meters or 26 trillion cubic feet, which would meet Turkey’s needs for approximately 20 years – said the source. Turkish officials, including Energy Minister Fatih Donmez, did not announce details about the discovery, stating that Erdogan would inform the public about 'the surprise' himself.

The Turkish president’s office and the Ministry of Energy were not immediately available for comment on the amount of reserves in the newly discovered field. Turkey relies almost entirely on imports to meet its energy needs. It is currently searching for hydrocarbons in the Black Sea and the Mediterranean, and its exploration activities in disputed waters have sparked protests from Greece and Cyprus.

If the claims of the unnamed source are confirmed, the new field is significant. Fields containing between 1,000 and 2,000 trillion cubic feet of gas are typically developed, Reuters reminds. Turkey spent $41 billion on energy imports last year, with Russia and Iran being its main suppliers. Reducing energy imports would improve the state of public finances and alleviate the chronic balance of payments deficit that pressures the lira. However, analysts warn that Turkey could face additional infrastructure costs.

– Even if gas has indeed been discovered and preparations for its extraction are underway, it will take four to six years to reach the production phase – says John Bowlus, editor of Energy Reports. He points out that demand for gas and prices are currently at record low levels, and only a few are investing in new production.

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