Valeura continues to make good progress in Turkey where the company announced a technical success at the Inanli-1 well in November. The well continues to be tested into 2019.
Turkey is structurally short gas, importing gas by pipeline and LNG - LNG regasification capacity is 12bcm/year with cargoes from Algeria, Nigeria and the Middle East. Domestic gas production is therefore long awaited and with Valeura owning the local pipeline network around its licence areas, it is in a good position to start supplying the grid once it is in a position to proceed to development.
The recent gas price hike by BOTAS is useful as well - not only does it protect the gas price in USD terms, but the price increase for local buyers has incentivised such buyers to turn to Valeura gas which has the freedom to sell directly to end users.
The domestic gas prices for power producers are: USD9/mmbtu for power producers, USD6.8/mmbtu for industrial customers and USD5/mmbtu for domestic users. Valeura can make inroads with buyers who currently take gas at the higher end of the pricing range from BOTAS.
Turkey is structurally short gas, importing gas by pipeline and LNG - LNG regasification capacity is 12bcm/year with cargoes from Algeria, Nigeria and the Middle East. Domestic gas production is therefore long awaited and with Valeura owning the local pipeline network around its licence areas, it is in a good position to start supplying the grid once it is in a position to proceed to development.
The recent gas price hike by BOTAS is useful as well - not only does it protect the gas price in USD terms, but the price increase for local buyers has incentivised such buyers to turn to Valeura gas which has the freedom to sell directly to end users.
The domestic gas prices for power producers are: USD9/mmbtu for power producers, USD6.8/mmbtu for industrial customers and USD5/mmbtu for domestic users. Valeura can make inroads with buyers who currently take gas at the higher end of the pricing range from BOTAS.
