The reform in the Turkish natural gas market: A critical evaluation

Abstract

Turkey is in a strategically advantageous position in terms of its natural gas market. Being in the middle of Europe and energy-rich countries of Central Asia, it can be an energy corridor between these two regions. It can import gas from a number of countries and diversify its sources. This situation may also provide motivation for a competitive gas market. The recent reform in the market, which began in 2001, was an attempt to strengthen the natural gas market to this end. However, the reform has not worked out as expected so far. This article discusses recent restructuring efforts in the Turkish natural gas market. We focus on the legal structure and economic consequences of the legal change within the international economic relations. After presenting a detailed discussion of the legal framework, we draw attention to the problems of the industry and difficulties in the transition to a more competitive market structure. In the end, we touch upon some regulatory issues and potential conflicts.