Energy is one of the biggest cost components of the
industry varying according to sectors. Better energy
management increases the competitiveness of industrial
enterprises in comparison to their peers that are in the
same category and have similar costs.
With the start of the liberalization of the natural gas market
as per Law No. 4646 in 2001, the intention was to make
the natural gas sector financially strong, stable and
transparent for the purpose of supplying natural gas to
consumers with quality, continuity and compatibility.
Natural gas became an even more significantly competitive
factor with active players entering the market in 2007.
Balancing and settlements are made daily in the system,
which is operated in accordance with the Network Code
and related legislation enacted by the Energy Market
Regulatory Authority (EMRA). Industrial companies that
can manage their daily gas consumption and make better
consumption forecasts gain price advantages and make
significant savings.
Keeping this target in mind Turcas Gas Trading (Turcas
Gas), a wholly owned subsidiary of Turcas Petrol A.Ş., was
established in June 2005. As an active participant in the
liberalization process of the natural gas market, the
company obtained a 30-year Natural Gas Wholesale License
from EMRA to perform natural gas import and wholesale
operations on May 17, 2007.
Turcas Gas obtained a natural gas selling right of 100
million cubic meters per annum through its collaboration
with Shell Energy, which obtained an annual natural gas
import right of 250 million cubic meters from the Import
Contract Release Tenders of BOTAŞ on November 30, 2005.
With the commencement of natural gas imports on
December 19, 2007, Turcas Gas broke new ground in the
natural gas sector and took a leading role in the liberalization
process as one of the first private trading companies by
selling natural gas to its eligible customer Eti Aluminium
Company through bilateral contracts during 2008.
In 2009, Turcas Gas has been the natural gas supplier of
Gaziantep Organized Industrial Zone, which is one of the
largest Organized Industrial Zones in Turkey. For 2010,
Turcas Gas will be one of the suppliers of Petkim Petrokimya
A.Ş.
Since its establishment, Turcas Gas has acquired
international know-how and experience through
collaborations with multinational energy companies in
addition to its domestic activities. During this period of
deregulation, in which trading mechanisms began
operating, market oriented legislation was formed and
improved upon. Turcas Gas aims to be one of the leading
private companies in the import/wholesale market by
significantly increasing its trade volumes year on year.
Since natural gas imports are expected to be liberalized
in the near future, Turcas Gas holds a strategically
advantageous position through its existing collaboration
and cooperation with natural resource rich countries such
as Azerbaijan and Iran.
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| Company Profile |
Paid-in Capital
16.251.500 TL
Net Sales
43.282.259 TL
2009 Sales
84.000.000 Sm3
Ownership Profile
%100 Turcas Petrol A.Ş.
Board of Directors
Erdal Aksoy - Chairman
Yılmaz Tecmen - Vice Chairman
Banu Aksoy Tarakçıoğlu - Member
S. Batu Aksoy - Member
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Market and Operational Risks
Natural Gas Market Law no: 4646, issued in 2001 mandated
the state owned BOTAŞ to reduce its share in natural gas
imports to 20% of the annual domestic consumption and
transfer the rest of the quota to the private sector by 2009.
Unfortunately, BOTAŞ could only transfer 10% of its existing
share to the private companies by 2010 and maintained
its monopoly on pricing. Non-state players, who were
given the right to import natural gas could not price their
products freely due to BOTAŞ' monopoly in the market.
Hence, the anticipated free market standards for natural
gas have not been achieved, yet.
Cost of natural gas came down sharply in the second and
third quarters of 2009 while BOTAŞ did not reduce the
prices to the same extent, allowing private importers to
write profits during this period. In the last quarter of 2009,
however, natural gas costs started to rise again and wiped
out the earlier gains recorded in the previous two quarters.
As a result of the declining demand and contracting natural
gas market, BOTAŞ focused on big ticket customers and
gave them large discounts in order to attract their
businesses. Relatively small private players were left with
small and irregular buyers that were riskier in terms of
revenues and stability.
Legislation Changes
Private sector has expected a new law replacing the
existing one during the year, since the original one failed
to establish a free natural gas market by 2009. Lack of a
new law forced private players to be more cautious and
risk-averse. Turcas Gas also postponed its mid to long term
plans to 2010 anticipating the legislation of a new
regulation. Any further delay in forming a strategy due to
lack of regulation represent a risk for the companies in
the sector.
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