The Natural Gas Futures Market (NFM) will enable market participants to predict prices and minimize risks against price fluctuations, Turkey's Deputy Energy and Natural Resources Minister and Chairman of EXIST Abdullah Tancan, told Anadolu Agency.
'When futures contracts applications start in the NFM, market participants will be able to manage their portfolios in the longer term but flexibly. Participants will be able to clarify their sale prices in advance under monthly, quarterly and yearly contracts,' he explained.
Tancan expects more competitive reference prices for customers when the trading volume on the NFM increases, minimizing future risks while contributing to supply security.
He also echoed the possibility of trading Black Sea gas on the NFM, the first production of which is planned for 2023.
"Turkey’s natural gas market, with its diversified sources and production in the Black Sea, will enable the creation of a competitive reference price. We see the opening of the NFM as a milestone for our country in bringing us closer to the aim of becoming a gas trading hub," Tancan said.
Initially, a volume of between 3 and 5 billion cubic meters is planned for production per year from the Black Sea by 2023. However, this could increase to between 15 and 20 billion cubic meters annually to reduce Turkey's gas imports by around 30%.
Earlier in summer, Mustafa Yilmaz, head of Turkey's Energy and Market Regulatory Authority (EMRA) said Turkey's gas discovery of 540 billion cubic meters with a market value over $100 billion could be open for trading under the name ‘Black Sea Gas Contract’ in the natural gas futures market.