Turkey’s supply-demand balance and renewal of its LTCs
The strong increase in Turkish demand and the call on Russian pipeline flows, in the context of tight European markets in late 2021 and the high price environment in 2022, raises questions about the outlook for 2022. Following the Russian invasion of Ukraine and Europe’s anticipated need for higher LNG imports, markets are eyeing with concern competing demands for LNG this year.
This paper argues that 2022 is unlikely to see another record year for gas demand due to a combination of demand- and supply-side factors. It further reviews pipeline and LNG supplies in 2021 as well as gas supply projections for 2022, and also examines the price sensitivity of the Turkish market.