GENERAL

BOTAŞ to Buy Natural Gas with Foreign Credit for the First Time in Its History

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CHP Deputy Chairman Ahmet Akın made a written statement about BOTAŞ obtaining a Treasury-guaranteed loan of 929 million dollars from DeutscheBank for the purchase of LNG (liquefied natural gas).

CHP Deputy Chairman Ahmet Akın stated that BOTAŞ's borrowing from abroad for the purchase of LNG from the spot market shows the financial difficulties of both Turkey and the institution, and said, "BOTAS previously bought LNG from the spot market by buying foreign currency from the Central Bank, now it is the treasury from abroad. He had to get a guaranteed loan. This shows that both our country and BOTAŞ are in a major financial crisis.”

CHP Deputy Chairman Ahmet Akın made a written statement about BOTAŞ obtaining a Treasury-guaranteed loan of 929 million dollars from DeutscheBank for the purchase of LNG (liquefied natural gas). In his statement, Akın from CHP stated the following in summary:

Natural gas will be purchased with foreign credit for the first time

“The wrong energy policies of the AK Party government make the supply security of our country controversial. While the financial crisis between public institutions and the privatized sector deepens every day; The fact that BOTAŞ received foreign loans for the purchase of natural gas for the first time in its history shows that both Turkey and the institution are experiencing financial difficulties. Having to use foreign loans for LNG purchases revealed that the government's statements about the natural gas reserves in the Black Sea were made for political profit.

Spot LNG purchase decision doubled costs

The government's tendency to purchase LNG from the spot market instead of renewing long-term pipeline agreements after the decline in natural gas prices in 2020 has caused natural gas to be much more costly in Turkey today. While the rate of LNG purchased from the spot market in total natural gas imports was 2018 percent in both 2019 and 10, this rate increased to 2020 percent in 19. With this erroneous decision, natural gas prices in both housing and industry increased at a record rate.

Only one-tenth of the LNG need will be purchased

Foreign loans received by BOTAŞ to date have only been used to finance projects such as underground storage facilities. Now, BOTAŞ' obtaining a loan of 929 million dollars from DeutscheBank for LNG purchase shows that it is in a big impasse. While approximately 2021 billion cubic meters of LNG was purchased from the spot market in 7; this amount is expected to increase to 2022 billion cubic meters in 9. With the 929 million dollars that BOTAŞ received from abroad with a three-year maturity, only 9 billion cubic meters of Turkey's approximately 1 billion cubic meters of LNG need will be met. In other words, only one-tenth of the LNG that Turkey buys from the spot market in a year can be obtained with foreign loans.

Citizens pay their bills dearly

Our citizens pay the price of the wrong and unplanned policies of the government with both expensive bills and supply security problems. Considering that in February 2022, the gas flow to the industry could not be ensured due to the empty underground tanks and the lack of planning, and the production ceased, the importance of BOTAŞ is understood once again. However, the fact that BOTAŞ, which started to make losses every year, now has to take loans abroad for the purchase of natural gas, is an indication that the public institution has almost gone bankrupt.”