Turkey Energy

Ground is set to be broken in late summer on a $10bn pipeline that will carry Azeri natural gas to Turkey and on to Europe, as energy security remains a key issue in the region. 

Rising demand for fuel and oil derivatives, combined with an expanding petrochemicals sector, is driving growth in Turkey’s refining industry, with competition set to heat up over the next few years for the increasingly lucrative market. 

As Turkey looks to diversify its sources of natural gas, one option that is coming closer to reality is a deal with the Kurdistan Regional Government to build an oil and gas pipeline from northern Iraq. While this link would help consolidate Turkey’s position a regional energy corridor, it risks upsetting relations with Iraq.

Plans to consolidate Turkey’s position as an energy transit bridge appear to have suffered a setback, with a major project to connect the Black Sea and the Eastern Mediterranean put on hold by both the Turkish government and one of the scheme’s key investors, though for different reasons.

As the Turkish government drums up support for investment in renewable energy, international firms continue to face significant challenges in conducting environmental impact studies, securing funding and acquiring licences.

Faced with rising energy consumption, Turkey’s government has moved to meet growing demand by sealing a key gas pipeline deal with neighbouring Azerbaijan and stepping up efforts to diversify its power sources away from hydrocarbons imports.