Iran is Turkey’s second-largest natural gas supplier after Russia, providing about one-quarter of the country’s 40 billion cubic meters per year.
On Monday, approximately 10 billion cubic meters was cut off after the pipeline was sabotaged.
And even though nobody has admitted to the the sabotage, Turkish officials suspect the Kurdistan Workers Party (PKK). The PKK has been involved with attacks on this particular pipeline before, and could have been provoked by a bombing of their northern Iranian camps early last week.
And while there has been a ceasefire between Turkey and the PKK since 2013, it seems the two sides have taken up arms again. Turkey’s recent bombing of the groups camps is being called a “war on terrorist groups.” The PKK has announced that the military action renders the ceasefire meaningless, though they have not officially voided it.
Luckily for Turkey, domestic demand has been steady, and the lost supply from the Turkey-Iran pipeline has not yet been replaced by other countries.
That’s not the case for Iranian natural gas, however, which will lose traction for a while due to the out-of-commission pipe. Repairs have already begun, but there is no telling how long they will take.
Since the recent Nuclear Deal has opened the doors for Iran to rejoin the oil market, infrastructure, expansion, and improvement is already a necessity. More problems with existing pipelines will only set the country’s oil and gas markets back, possibly leaving them without customers for their huge supplies.
To continue reading…
Until next time,
A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.