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Despite Türkiye's vigorous efforts to diversify its energy sources, Russia maintains a pivotal role as a leading partner in Türkiye's oil and gas sectors. Türkiye has recently signed long-term contracts with multiple partners, yet Russia's significance in Türkiye's energy mix remains substantial.
In 2023, Türkiye's energy landscape witnessed significant developments highlighted by the Energy Market Regulatory Authority (EPDK) and GAZBIR 2023 reports.
Türkiye's consistent reliance on Russian gas, holding above 40% for almost 3 years despite minor fluctuations, underscores its divergence from Europe. Following the start of the Ukraine War, EU countries rapidly reduced their gas imports from Russia.
While the EU's share of Russian gas (both pipeline and LNG) was close to 40% in 2021, it dropped to 15% in recent years. In contrast, Türkiye's stable stance suggests a strong commitment to Russian gas in the near term.
Türkiye's recent agreement with ExxonMobil in May to import 3.1 bcm annually could alter rankings, potentially increasing the U.S.'s market share beyond the current 8%, provided other suppliers continue deliveries.
According to GAZBIR's 2023 Natural Gas Report, natural gas is utilized across five main sectors: residential (35%), power plants (28%), industrial (24%), services (11%) and energy (2%). Despite economic challenges affecting the industrial sector, gas usage remains resilient.
Türkiye's petroleum imports increased by 3.34% in 2023, totaling 49 million tons.
Russia emerged as a major supplier, exporting 10.7 million tons of crude oil and significant diesel volumes. This brought Russia's total petroleum exports to Türkiye to 25 million tons, or 51%.
Following the Ural crude oil price cap imposed by the EU and G7 countries at $60, Russia sought alternative markets, offering discounts as high as $20 to countries like China, India, and Türkiye. This strategy also extended to processed petroleum products, evidenced by increased diesel imports.
Consequently, domestic production of diesel decreased by 5.4% to 16.4 million tons, with a similar decline in gasoline production to 4.9 million tons, down 4.4%.
Iraq, previously a top supplier, now ranks second after Russia, contributing 9.8 million tons or 20% of Türkiye's petroleum market share. The decline is partly attributed to the cessation of oil flow through the Kerkük-Yumurtalık Pipeline since March 2023, following an arbitration ruling unfavorable to Türkiye during President Erdogan's April visit to Iraq.
Kazakhstan emerged as another significant supplier, exporting nearly 1.4 million tons via the Baku-Tbilisi-Ceyhan pipeline and other routes. Astana-Nur Sultan contributed 5.7 million tons to Türkiye's market share, totaling 11%.
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