Türkiye to establish gas trading centre in 2025

Turkish Minister of Energy Alparslan Bayraktar has said that a gas trading centre will be established in Türkiye’s Istanbul city as part of the international gas hub project in 2025.

Bayraktar stated that Russian President Vladimir Putin has assured Turkish President Recep Tayyip Erdogan that he will instruct Russia’s Gazprom company regarding this initiative, Caliber.Az reports via Turkish media. 

The project will involve Türkiye's Botas Petroleum Pipeline Corporation and Gazprom as key participants. 

"Throughout 2025, we will establish a robust infrastructure that, in partnership with Botas and Gazprom, will manage a trading platform in the Istanbul Financial Centre. We have sent a memorandum of understanding to the involved sides," Bayraktar noted.

He emphasised that the Istanbul Gas Index will operate at the trading centre. 

"From now on, when Russia sells its gas, it will say, 'I am selling this gas based on the Istanbul gas index formula'," the minister added. 

Russia has shown interest in the gas hub project in Türkiye amid the imposition of Western sanctions and the explosions affecting the Nord Stream pipelines. In October 2022, President Putin announced the construction of the gas hub in Türkiye, noting that it would help restore the lost transit volumes from the Nord Stream pipelines. In January 2023, the Turkish Ministry of Energy announced the beginning of construction for the hub. On October 23, 2024, President Erdogan met with President Putin, during which they discussed the establishment of the new gas hub.  

By Naila Huseynova