After relations between Moscow and Ankara have deteriorated, economic problems forced the Turkish leader in a hurry to look for new business partners able to invest in the Turkish economy. However, all is not so simple, for example, claims Erdogan that Ankara will easily be able to compensate for the reduction in gas supplies from Russia with the help of Qatar, it is very far from the truth. Well let’s try to find out the real search “rich daddy”.
A few words about the past
But I suggest to start to remember where it all began. After the twenty-fourth of November last year, the Russian su-24 was shot down by Turkish fighter in Syria, and managed to eject the pilot, the militants shot in the air, relations between Moscow and Ankara, to put it mildly, strained. All this had a significant impact not only on political but also on economic aspects. The latter is very clearly shook Turkey.
Not so long ago we talked about the fact that the sanctions imposed against Turkey, to a considerable extent made themselves felt: Russia has imposed a ban on import of Turkish products have been cancelled Charter flights between the countries, but the hardest had to the tourism business in Turkey.
Experts believe that due to the rupture of relations with Russia, but also because of the terrorist attacks in the country, the tourism business will be reduced by 42%. A significant figure, isn’t it?
A bad economist
But, as it turned out, the biggest loss of Erdogan. GAZ – that’s where the hidden source of possible bankruptcy and economic collapse of Turkey.
Not so long ago the leader of Ankara met with the Emir of Qatar Sheikh Tamim bin Hamad al-Thani. The meeting was due to the fear of Erdogan about possible disruptions in gas supplies from Russia. After a long conversation, Erdogan said that negotiating a deal for the supply of Qatari liquefied natural gas, Turkey will easily be able to compensate for any reduction in supplies from Russia.
But in practice, alas, it is not feasible. And there are a few reasons:
– Turkish limited power storage.
-This is prevented by long-term contracts concluded with Russia. Let me remind you, the failure of long term gas contracts is fraught with the payment of significant penalties in favor of the other party, of course. The agreement on supplies between Russia and Turkey was concluded for twenty years. That’s why neither Turkey nor Russia can stop the cooperation.
Qatari LNG is too expensive.
Of course, the media immediately began to write about what the alternative is for Turkey found that the meeting of the leaders of Turkey and Qatar first warning to Russia. But just think how LNG can replace twenty-seven billion cubic meters of natural gas supplied from Russia?
Don’t forget about the fact that Turkey simply does not have the infrastructure necessary for storage and re-gasification (the process for transfer of liquefied natural gas in gaseous state) commensurate with the supply of LNG from Russia.
Some numbers
According to the International energy Agency regasification capacity of Ankara is $ fourteen billion cubic meters, capacity of storage under the liquefied gas is generally limited to three. According to experts, these facilities are able to provide only about twenty percent of the national demand.
Well, another important point the price of Qatari LNG is unreasonably expensive and will hardly ever be able to compete with Russian gas prices.
Tricky and even trickier
All you remember about the shale boom in North America, so it ruined the plans of Qatar to export LNG to Europe and the U.S., as the price of his gas was too high. Here the country and is trying to recoup its losses in the Asian markets, including Turkish. However, no matter how they tried to benefit by the Turks sooner or later will realize that LNG is just a propaganda myth.
And then there’s the Israeli court decided to ban the extraction of gas from the “Leviathan”, but Turkey was counting on these deliveries. But what can I say: unlucky, so unlucky.
Yes apparently, the economist from the Turkish leader is so-so, miscalculated a bit, I thought that the oil delivered by terrorists, will pay for all, but there it was.
