Oxford Energy Podcast – The Renewal of Turkey’s Long Term Contracts: Natural gas market transition or ‘business as usual’?
In this podcast David Ledesma discusses a new OIES paper on renewal of Turkish long-term contracts and possible market transition away from oil-linked prices with the author Gulmira Rzayeva. They cover the lack of gas market liberalisation, which resulted in absence of a supply/demand price discovery mechanism enabling it to import gas at a price reflecting true market fundamentals. They also discuss the contractual terms that Turkey wants to change and the Botas assertive position in the upcoming negotiations. They discussion also covers the position of the suppliers including Gazprom, who will inevitably give concessions in order to maintain the market share.