A 50-50 JV of Statoil of Norway and Turkey's leading
industrial group Koc, Koc-Statoil Gaz (KSG) was established in April
2004 to import and market natural gas in the country. It began the
business in the summer of 2004 by selling LNG-sourced gas which it takes
from the Marmara-Ereglisi regasification system in the Dardanelles. It
buys the gas from Botas under a long-term contract.
Botas executives agree that KSG will eventually become their
company's most serious competitor. KSG executives predict that
theirs will become the biggest gas utility in Turkey in the next decade.
Although by law no firm in Turkey will be allowed to have more than a
20% share of the market from 2009, both partners in KSG are strong
enough to make this company an integrated giant. Koc is the biggest and
most diversified industrial group in Turkey and has businesses in
various other sectors including transportation and gas appliances, LPG
bottling and marketing, etc.
Statoil is the state of Norway's privatised giant which is
integrated and, in the next decade, will become a global trader in brand
LNG. Statoil, which has bought Norsk Hydro and now is known as
StatoilHydro, is a co-leader of the Shah Denis group whose offshore
field sources the 6.6 BCM/y Southern Caucasus Gas Pipeline (SCGP) which
has been supplying Turkey since early 2007. Statoil is a key partner in
SCGP. The capacity of this pipeline is eventually to reach between 20-25
BCM/year and will supply the Nabucco pipeline to Europe. StatoilHydro
has prepared to enter Turkey in a big way for years.
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