LNG

Turkey’s currency woes to aggravate gas price inflation

Turkey’s deepening currency crisis will continue to make gas more expensive for end-users, dampening demand for the fuel Turkey’s deepening currency crisis will continue to make gas more expensive for end-users, dampening demand for the fuel.
By Abhishek Kumar 5 September 2018 0 32435
The Pioneering Spirit pipe-laying vessel at work on Turkish Stream (Gazprom)

Directional impact on forecast:
Downbeat on Turkish gas demand

Turkey risks facing a fully-fledged economic crisis as its currency woes deepen. The persistent weakness in the Turkish lira against the United States dollar has already made gas more expensive for end-users, and the situation is set to worsen before it gets better. This in turn will continue to weigh on Turkey’s gas demand and will exacerbate the underutilisation of the country’s gas import capacity.

The dollar-lira exchange rate, which reflects the strength of the...