Turkey navigates game-changing LNG dynamics

The country is aiming for hub status as it boosts regas and storage capacity, but while the opportunity is great, there is much work still to do

LNG has moved from niche to strategic over the past five years. COVID, Russia’s invasion of Ukraine, insecurity in the Red Sea and drought in the Panama Canal all threatened flows, yet LNG cargoes largely kept moving. Prices have narrowed towards parity with pipeline gas, and flexibility—not just molecules—has become the premium. Turkey has increased the share of LNG in its gas mix to nearly a third, underpinned by regasification terminals, FSRUs and new storage. But it has not yet achieved its longer-stated goal of becoming a genuine regional price hub. To achieve hub status, Turkey needs to take five steps Global LNG trade hit 406mt in 2024, and more than a third was spot or short