AN ECONOMIC PERSPECTIVE FOR TURKISH STREAM

About 12.8% of global gas consumption is coming from Europe whereas it only produces 2% of global gas volume. Therefore, ensuring a diverse, secure, and affordable supply of natural gas is vital for Europe to maintain sustainable growth. In this paper, an economic perspective will be provided for a new pipeline project, namely Turkish Stream that is expected to transport natural gas to European Union (EU). A demand and supply analysis will be performed in terms of understanding whether EU really needs such a pipeline and in particular there will be a focus for the implication of this new project for Turkey.