Supply & Demand

Looming recession threatens Turkey’s gas sector

Turkey’s worsening currency crisis poses a significant threat to its economic growth prospects, which in turn will adversely impact investment in the country’s gas sector Turkey’s worsening currency crisis poses a significant threat to its economic growth prospects, which in turn will adversely impact investment in the country’s gas sector.
By Abhishek Kumar 19 September 2018 0 32598
The freefall in the value of the Turkish lira against the United States dollar is making LNG imports more expensive. (PA)

Turkey risks facing a fully-fledged economic crisis as its currency woes deepen, increasing the likelihood of a recession in the country. Turkey’s deteriorating economic situation will cause significant harm to its gas sector in terms of both investment and demand for the fuel. The effect of the currency crisis is becoming evident on Turkish gas consumption, the decline of which will also curtail capacity utilisation at the country’s existing and upcoming gas import infrastructure.

Turkey is dependent on imports of pipeline gas and LNG to meet...