Developments in the oil sector
The average oil price in 2017 trended 24%
above the 2016 average level at USD 54
per barrel. Despite this increase, strong
economic activity in Turkey paved the way
for 7% annual growth in demand for oil
products to 28.5 million tons, according to
Energy Market Regulatory Authority (EMRA)
data. Turkey is the 7th largest market in
Europe for petroleum fuel products. In 2017,
the growth was primarily driven by 8%
increase in diesel demand which reached
24.2 million tons. Gasoline consumption
increased by 3% to reach 2.3 million tons
while demand for jet fuel also increased by
around 3% thanks to recovery in tourism.
Developments in the refining sector in 2017
significantly supported margins in the sector.
The combination of increasing demand for
diesel and jet fuel in Asia and US as well as
economic recovery in Europe supported
middle distillate margins. Increased global
trade volume and rising usage for electricity
generation brought fuel oil margins to their
highest levels in recent years. The favorable
margin environment encouraged refineries
to operate with higher capacity utilization.
However, strong global demand, unplanned
refinery stoppages and seasonal supply
disruptions due to the hurricanes in the US
pushed refinery margins higher throughout
the year. Accordingly, the average
Mediterranean refining margin stood at
USD 5.34 per barrel, indicating an annual
increase of USD 1.37 per barrel.
Developments in the LPG sector
Turkey is the 11th largest LPG market in
the world and the 2nd largest in Europe.
Turkey is also the 2nd largest autogas
market in the world with the world’s
largest fleet of LPG vehicles.
LPG demand in 2017 was adversely
impacted by 38% average increase in
LPG prices and currency depreciation.
According to EMRA’s 2017 report, total
LPG consumption declined by 1% and
stood at 4.1 million tons. In the same
period, autogas market declined by 1% to
3.1 million tons while cylinder gas market
declined by 1% to 0.8 million tons.
As of the end of 2017, 23% of Turkey’s
LPG demand was met by domestic
production while the remainder was
imported mainly from Algeria, Norway
and the US.
Developments in the electricity sector
In 2017, Turkey’s installed power
generation capacity increased by 6% to
83,275 MW. In terms of composition,
private sector has the highest share with
65% of installed capacity, 24% stateowned
while the remaining 11% is based
on the Build-Operate and the Build-
Operate-Transfer schemes which sell their
production to TETAŞ (Turkey Electricity
Trading and Contracting Company).
Of the installed power generation capacity,
33% consists of hydroelectric power
plants, 32% of natural gas power plants,
22% of coal power plants and 11% of
other renewable and thermal power plants.
The share of solar power in total capacity
has risen to 2%.
The privatization of hydroelectric power
plants and domestic coal fields held by
EÜAŞ (state-owned Electricity Generation
Company) continued throughout the
year. EMRA’s 49 year license issuance for
Turkey’s first nuclear power plant, Akkuyu
was one of this year’s most important
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