Energy minister refutes BOTAS debt to Gazprom, says privatization not on cards

Minister of Energy and Natural Resources, Alparslan Bayraktar refuted allegations that BOTAS, a state-owned company responsible for natural gas and petroleum transportation, owes $27 billion in debt to Russian Gazprom, stating that privatization is not considered either.

“BOTAS has no overdue or deferred debts with any of its suppliers. We are not considering privatizing BOTAS in any way. We have a very strong BOTAS,” Minister Bayraktar vowed during the discussions on the ministry’s 2025 budget at the Turkish Parliamentary, on Monday.

Addressing Türkiye’s energy expenditure, Bayraktar highlighted that the country spent approximately $44.6 billion on natural gas in 2022, which decreased to $23.5 billion in 2023.

“Our entire strategy since 2002 has been designed to reduce Türkiye’s dependency on foreign energy sources,” Bayraktar emphasized.

‘We meet 15% of our consumption needs locally’

Bayraktar emphasized the need for Türkiye to continue exploring oil and natural gas in various regions. “Currently, we produce 8 million cubic meters of gas daily within Türkiye and, including our operations in Azerbaijan, exceed 20 million cubic meters daily, meeting 15% of our needs, and we dedicated increase this figure further,” Bayraktar indicated.

The minister detailed Türkiye’s oil production, reporting a daily output of 150,000 barrels from domestic and international sources, against a daily consumption of approximately 1 million barrels.

Highlighting plans to ramp up exploration in the Gabar region and intensify efforts in Somalia, Iraq, and beyond, Bayraktar revealed that Türkiye’s domestic and international oil production is worth $3.4 billion.

He noted that natural gas production has cut energy bills by $2.1 billion, bringing total savings from oil and gas to $5.5 billion.

Türkiye meets all household electricity consumption through renewable energy

Bayraktar underlined the importance of renewable energy in Türkiye’s progress towards net-zero emissions, stating, “Türkiye has reached a point where all electricity used in households is generated solely from wind and solar energy.”

Describing nuclear energy as a 70-year aspiration for Türkiye, Bayraktar recalled the 2010 agreement with the Russian Federation that initiated nuclear projects.

Bayraktar induced the need for nuclear energy to achieve climate goals, citing the “Declaration on Tripling Nuclear Energy,” signed by 31 countries, which highlights its necessity in combating global warming.

“We need three major conventional plants—Akkuyu, Sinop, and Trakya—housing approximately 12 reactors, besides small modular reactors. Current global trends, including artificial intelligence and big data, are driving massive electricity demand,” Bayraktar said.

Natural gas subsidies to mirror electricity policy changes

Bayraktar clarified the plan to remove around 1.2 million households from electricity subsidies because of their high consumption, accounting for 17% of total electricity usage.

“Reflecting the real cost of electricity to these households will save approximately ₺50 billion, or $1.5 billion, in Treasury support,” Bayraktar explained.

Bayraktar also signaled to phase out natural gas subsidies in the near future.

The commission approved the 2025 budgets of the Ministry of Energy and Natural Resources, along with the Energy Market Regulatory Authority, the Nuclear Regulatory Authority, the General Directorate of Mineral Research and Exploration and other affiliated institutions.