Turkey's path towards an energy market

Abstract

This chapter discusses the possibility of developing an energy market in Turkey. Turkey currently serves as an energy transit corridor, with the Baku-Tbilisi-Ceyhan (BTC) and Kirkuk-Ceyhan pipelines and with its seaborne oil trade, where large volumes are carried by tankers through its straits. Turkey also has the potential to become an energy market with new projects connecting producers in Central Asia, the Middle East, and the Caucasus, and major consumers of oil and natural gas in Europe and other regions of the world. Two recent megaprojects, The Trans Anatolian Natural Gas Pipeline Project (TANAP) and Turkish Stream will move Turkey closer to fulfilling this dream. Turkey, however, needs to meet some requirements to be considered a mature energy market. These are related, among others, to factors such as its infrastructure, storage capacity, market reforms, and easy market access for private firms to actively participate in the energy market.