oil & energy industry in turkey
DESCRIPTION
OIL & ENERGY INDUSTRY IN TURKEY. PROCESS OF LIBERALISATION MAY 2009. PETDER MEMBERS. FIELD OF OPERATION FUELS (Black and white products) LPG, (Bulk, bottled and auto gas) LUBES AVIATION FUELS MARINE FUELS. Altınbaş Petrol ve Ticaret A.Ş. PETROL OFİSİ A.Ş. - PowerPoint PPT PresentationTRANSCRIPT
OIL & ENERGY INDUSTRY IN TURKEY
PROCESS OF LIBERALISATION
MAY 2009
PETDER MEMBERS
FIELD OF OPERATION
• FUELS
(Black and white
products)
• LPG,
(Bulk, bottled and
auto gas)
• LUBES
• AVIATION FUELS
• MARINE FUELS
Belgin Madeni Yağlar
PETROL OFİSİ A.Ş.
BP Petrolleri A.Ş.
Shell & Turcas Petrol A.Ş.
BP Gaz A.Ş.
The SHELL Company of TURKEY Ltd.
DELTA Akaryakıt Tic. A.Ş. TOTAL Oil Türkiye
A.Ş.ERK Petrol Yatırımları A.Ş.
TURCAS Petrol A.Ş.
MOBIL Oil Türk A.Ş.
Altınbaş Petrol ve Ticaret A.Ş.
Shell Gaz Ticaret ve Sanayi A.Ş.
OUTLINE
GENERAL OVERVIEW OF ENERGY SECTOR IN TURKEY
Legislative structure
Market Review
TURKISH OIL INDUSTRY
Demand & Supply
Refining, Logistics &Marketing
Turkey has incorporated numerous Laws and Regulations in line with EU accession programme.
Electricity and Natural Gas Market Laws (2001)
Petroleum Market Law (December 2003)
LPG Market Law (April 2004)
Petroleum Law ( in the parliament).
These laws essentially drives the energy sector towards a fully liberalized market structure
Energy Market Regulatory Authority (EMRA) has been established at the end of 2001 to regulate all activities in the Gas, Power and Oil Products Markets.
TURKEY – Energy Market Legislation
5Source: BP Statistical Source: BP Statistical ReviewReview
PRIMARY ENERGY CONSUMPTION
0.0
20.0
40.0
60.0
80.0
100.0
120.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Oil Natural Gas Coal Nuclear Hydro
Oil31%
Natural Gas
31%
Coal30%
Nuclear0%
Hydro8%
Primary Energy Consumption in 2007 (Million Tons Equivalent)
Natural gas is the fastest growing fuel in Turkey’s energy supply and has taken lead from oil as of 2008
Primary Energy Consumption Of Turkey
(Million Tons of Oil Equivalent)
Imports23.5392%
Domestic Production
2.068%
Turkey's Crude Oil ConsumptionMTON
Source: Source: EMRA 2007 ReportEMRA 2007 Report
Turkey is aiming to reduce its high dependency on energy imports by diversification and through increasing utilization of domestic resources. Exploration efforts in the Black Sea have increased; hydro and coal consumption is further encouraged.
New Petroleum Law to encourage new exploration incentives
Turkey’s aspiration is to become an energy bridge between major oil and gas producing countries of the Middle East and Caspian, and the consumer markets in Europe.
Turkey's port of Ceyhan is an important outlet for current Iraqi oil exports. Azeri oil through Baku-Tbilisi-Ceyhan (BTC) has been active in operation since late 2006.
Samsun – Ceyhan pipeline project aims to connect oil sources in Black Sea to Ceyhan area.
Nabucco pipe line project aims to deliver Caspian natural gas to Europe through Turkey..
TURKEY – Energy in brief
Source : Tüpraş
OIL DEMAND & TRENDS
5-7%
Total size of oil industry in Turkey is 60 Billion $
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1000
m3
Gasoil Low Sulphid GasoilKerosene Unleaded Gasoline (RON 95)Regular Gasoline Unleaded Gasoline (RON ≥ 97)Premium Gasoline / Unleaded Gasoline With Additive
TRENDS IN WHITE PRODUCTS
In 2008 total white products consumption decreased by 1% to 18.44 million m3.
% 0% 5,8
% 5,9 % - 1,0
DIESEL CONSUMPTION
Source: GDPA & PETDER
GASOLINE & Auto LPG CONSUMPTION
Trends in consumption of oil products
• Diesel consumption increasing• Gasoline consumption decreasing
•Auto LPG strong substitutionin gasoline market
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Million
Tons
Total Gasolines LPG Autogas
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Million
Tons
Gasoil Low Sulphid Gasoil
BLACK PRODUCTS & LUBRICANTS CONSUMPTION
LUBRICANTS
Source: GDPA & PETDER
BLACK PRODUCTS
Black Products & Lubes
0
100
200
300
400
500
600
700
'000
ton
nes
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Million
Tons
Fuel Oil No:6 Heating Oil
Heating Oil14%
Fuel Oil No:686%
Engine Lubes39%
Gear & Transmission
Fluids7%
Chemicals9%
Industrial32%
Marine Lubes9%
Gress4%
2008
• 4 Refineries, • 84 Licensed Storage Facilities • Distributors Fuel Storage Capacity 4.24 M.m3
LOGISTICS –Refineries, Storage Facilities &Crude Oil Pipelines
Licensed Players in Petroleum Market
REFINERY LICENSE 4
DISTRIBUTORS 51
DEPOTS 84
FUEL STATIONS 12439
LUBE 208
INDEPENTENT CONSUMERS 71
MARINE & AVIATION 58
Licenses As of 20th May 2009
Licensed Players in LPG Market
DISTRIBUTORS 63
DEPOTS 81
AUTOGAS STATIONS 7705
LPG TRANSPORT 38
LPG BOTTLE PRODUCERS 11
Licenses As of 20th May 2009
14 BCM
Russia WCBS 1&2
Russia - Blue Stream
Iran
Algeria LNG + Nigeria LNG
Natural Gas Supply- Operational
Natural Gas Supply- Contracted
Azeri Gas (Shah Deniz)
Turkmeni Gas
* No field development yet for Turkmeni gas
Natural Gas Supply- Under Discussion
Source: BOTAS
Turkey- Natural Gas Pipelines
OUTCOME OF LIBERILASATION PROCESS OIL INDUSTRY
OIL INDUSTRY IN TURKEY HAS SUCCESFULLY ADAPTED NEW PRICING SYSTEM
January 1st 2005 / Oil products / LPG distribution companies assign “ceiling” or “suggested” prices
• Pump prices are being published at EMRA web sites
RESTRICTIONS ON OIL IMPROTS HAVE BEEN REMOVED.
LICENSING PERIOD HAS BEEN SUCCESSFULLY COMPLETED.
√ 4 Refineries, 51 distributors, 14845 dealers, 136 lube oil licenses
√ All non-licensed players have been pushed out of market
IMPORTANT STEPS TOWARDS ALIGNMENT WITH EU REGULATIONS
√ Market liberalization (free movement of goods)
√ Fuels specifications adopted
• Full harmonization expected in 2009
√ Compulsory Oil Stocks (90 Days)
SUCCESSFULL PRIVATISATION AND INCREASED FOREIGN INVESTMENTS
Successful privatization of refineries, price for 51% ownership doubled in two years
Increasing foreign investment/interest in Turkish oil market
• Shell – Turcas JV
• POAŞ – OMV (34% share sales to OMV)
• LUKOIL bought all shares of AKPET company,
Interest in new large scale projects (Plans for a new refinery , new pipeline)
IMPROVED COMPETETIVENESS & TRANSPARENCY
• 51 Distribution companies
• Higher quality of service at the pump stations
• New products in market (98 octane, low sulfur diesel, fully unleaded gasoline, Biofuels)
• Highly competitive industry (campaigns, promotions etc)
IMPROVED OPERATIONAL SAFETY, IMPROVED TECHNICAL STANDARDS AT STATIONS AND TERMINALS
• GSM (Regulation for operational health & safety)
HIGHER LEVEL PARTICIPATION OF INDUSTRY ORGANISATIONS IN LEGISLATIVE PROCESS
OUTCOMES / RESULTS OF NEW LEGISLATIVE PROGRESS
Thank you…
Influence of taxation on pump price
Special Consumption Tax & VAT on Fuel products constittue an important part of pump price. More than 50 % of pump price is taxation.
61.42%
49.55%
48.47%
35.73%
46.35%
Average taxation (VAT+S.C.T) on pump prices (year average for 2008)
LPG Auto gas
Gasoil
Low Sulphide Gasoil
Gasoline RON 95
Fuel Oil No: 6
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
YTL
/ lt
Refinery ex Special Cons. Tax VAT Distribution
Tax component
High level of taxation in oil products: pricing structure of gasoline
ISSUES & OIL INDUSTRY CONCERNS IN TURKEY
Distr. Margin 10%
Tax 61%
Product 29%
* Calorific Efficiency is included
64
7178
101 103 105 105112
120
129
Yu
na
nis
tan
İsp
an
ya
Av
us
tury
a
İta
lya
İsv
eç
Fra
ns
a
Be
lçik
a
Alm
an
ya
İng
ilte
re
Tü
rkiy
e
Turkey is one of the highest oil taxing country
55 57
65 65
78 79 8184 84
121
Yu
na
nis
tan
İsp
an
ya
Be
lçik
a
Av
us
tury
a
Fra
ns
a
İta
lya
İsv
eç
Tü
rkiy
e
Alm
an
ya
İng
ilte
re
Unleaded gasolineDiesel
TOTAL TAX IN PUMP PRICE: € cents/lt