Turkey makes loss from natural gas this year

Turkey's state-owned natural gas trading company made a loss in 2014 as the rate of exchange rose beyond expectations, announced official gazette.

Turkey makes loss from natural gas this year
BOTAS, Turkey's crude oil and natural gas trading company made a loss in the gas trade, the government announced on its official gazette this week.

Turkey’s state-owned BOTAS is in the red as the cost of natural gas sold to Turkey increased when the rate of exchange rose unexpectedly. 

Turkey increased domestic natural gas prices early October to balance its purchase and sales, however, the nine percent increase in domestic natural gas prices ran short in balancing the books for the company. 

“The need for balancing profit and losses continues,” stated the gazette.

Turkey relies on foreign resources for its natural gas supply, especially from Russia, which creates a huge burden on the current budget deficit.

Moreover, the drought which Turkey experienced this summer decreased electricity production from hydroelectricity plants, which escalated production costs.

Turkey’s Electricity Generation Company EUAS which, according to Energy Ministry’s website, holds some 37 percent of Turkey’s total generation capacity is also expected to close this year with a loss, stated the gazette.

Turkey will also pay 678 million TL ($302 million) to Turkish Coal Operations Association and Turkish Pit Coal Association for free coal distribution to people in need.

Turkey plans to give away two million tons of coal in 2014, according to the gazette.

Anadolu Agency
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