Liberalising Natural Gas in Turkey

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As PwC Turkey, we published the Liberalising Natural Gas in Turkey report.

In this report, we address the three main aspects of the natural gas market, namely the questions of supply security, market liberalization and infrastructure constraints.

Over the past twenty-five years, Turkey’s demand for natural gas increased from a few million cubic meters to 46,5 billion cubic meters. The growth is due to the expansion of distribution and transmission networks as well as the preference for natural gas-fired plants in power generation. This growth trend is likely to continue for the foreseeable future. As Turkey relies on imports from abroad to meet its gas demand, market growth is linked to a number of policy questions ranging from geopolitical considerations to market liberalisation and infrastructure constraints. Thanks to its strategic location, Turkey also wants to become a regional natural gas trading hub.

Although some of the most important liberalisation targets in the Natural Gas Market Law No. 4646 have not been met, the Turkish market has grown. Going forward, however, the natural gas market liberalisation will be key to securing new supplies, bringing down supply costs, attracting private infrastructure investment and supporting power market liberalisation efforts.