Turkey Plans Electricity/Gas Swap with Iraq

Turkish Minister for Energy Taner Yildiz has said that the country will increase its natural gas imports from Iraq in exchange for the supply of electricity from Turkey to Iraq.

Speaking to reporters in Ankara, Minister Yildiz said the electricity sold to Iraq would come from a power station close to the Iraqi border; in turn, the country would supply Turkey with gas.

"With the power station we build near the northern border of Iraq, we will supply them with electricity, and in exchange they will give us natural gas," he said.

However, despite a push for increased gas activity in Turkey, including the Trans-Anatolian gas pipeline, Minister Yildiz said the government was continuing with measures to charge greater consumers of natural gas at higher prices as it was a resource which had to be imported.

"We cannot provide natural gas to citizens for free," he said. "We can do this for natural resources that are found domestically like coal, but natural gas is an imported resource. Therefore we are working on a system whereby those who use more, pay more."

He also dismissed any concerns that gas price increases would affect the country should major supplier Gazprom decide to implement price increases across its European customers. Owing to a deal signed between Turkey and Gazprom, he said, Gazprom would not and could not raise prices to Turkey for the duration of that deal.

Turkey continues to deepen its relationship with Iraq, especially in the area of gas imports and supply. Last month, Minister Yildiz said that Turkey would assist Iraq in the transport of Iraqi gas through the country, allowing Iraq to "take advantage" of Turkey's experience in the gas market.