- General Principles of Licensing In Turkish Liquefied Petroleum Gases (LPG) Market
- April 28, 2015
- Law Firm: HERDEM Attorneys At Law - Istanbul Office
- LPG market is regulated under the Law of Liquefied Petroelum Gases (LPG) Market Law and Amending Law to Electricty Market Law, Law No: 5307 (“Law”) in Turkey. Accordingly it is obligatory to obtain a license in order to carry out distribution, transportation, autogas dealership activities (except bottled LPG dealership), storage manufacturing of LPG cylinders, filling, examining, repairing and maintenance of LPG cylinders, and establishing and operating facilities for aforesaid activities.
Real or legal persons whom intend to conduct market activities should apply to the Energy Market Regulatory Auhtority (“EMRA”) for license after completing certificates, permission and the documents necessary required for foundation and operation of their facilities showing that LPG facilities have no impediments by means of issues such as development, public, environment, occupational health, safety and technical regulations donated by related public institutions.
In accordance with the Law, the process of granting, updating and temporarily suspending or canceling the licenses shall be undertaken by the EMRA. In granting licenses, the technology, quality, safety and sustainability of the enterprise and service shall be taken into account with respect to market entry. Private entities to perform the activities specified within the scope of a license shall be subject to the provisions of Turkish Commercial Code No. 6762. The licenses shall be issued in accordance with the aforesaid activity topics. Subtopics determined by the EMRA shall also be specified in the licenses. The license shall be granted in the name of the real or legal persons granted the right to perform the activity written on it. Beside the activity type, the license shall also include information about the type and geographical position of facility, technology and quantities required to perform the activity.
In Turkish law it is compulsory to get insurance for the activities carried out within the scope of a license. The licenses shall convey the rights to the holder to perform activities included in the license and enter into commitments. The rights conveyed by the license shall be utilized provided that the specifics noted in the Law, related legislation and license, are fulfilled. Those who perform market activities should avoid any kind of activity that would result in malicious intent or unsafe activities, take necessary measures to prevent their occurrence and eliminate any undesirable situations as soon as possible.
Those who perform activities as per the Law, shall be obliged to act in accordance with the commercial and technical legislation, to take necessary measures to prevent environmental risks; in case a condition that seriously threatens or adversely affects the security of life, property and environment of the public and their own facilities and activities arises, to notify the public authorities and those related parties who might be adversely affected of such threat and also notify the EMRA of the nature of the threat and the measures being taken to prevent such threat; to provide compulsory insurance and financial responsibility insurance for facilities and/or activities that are in the scope of compulsory insurance liability; to compensate any loss or damage incurred by third parties or the environment during the course of their operations; to make notifications in compliance with the procedures and principles, to submit the required information, documents and samples, sign the minutes and allow officials to conduct on-site investigation of the facilities when requested by the EMRA and the copies of standard contracts pertaining to their main field of activity and notify the EMRA of the modifications to be made on them before implementing such modifications; to employ a responsible manager at filling stations and autogas stations, to employ personnel who have received training and obtained certificate in their main field of activities.; regarding market activities, to supply LPG in accordance with the technical standards to be determined by the EMRA; to grant equal rights and liabilities to equal receivers (categories) and not apply different terms and conditions.
Those who shall supply LPG from foreign countries should posses a refinery or distribution license. The distributors shall obtain LPG from refineries or from foreign countries by importing them. Those who shall supply LPG from foreign countries should posses a refinery or distribution license. The distributors shall obtain LPG from refineries or from foreign countries by importing them. Processing license holders whom granted their licences under the Petroleum Market Law are allowed to import LPG providing to the condition that imported LPG is not subject to the market activity and exclusivley used in the petrochemical production. The LPG importation is realized from specialized customs after its conformity to the technical regulations is determined in these customs. LPG trade cannot be performed by those who don’t posses a license.