Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
The coronavirus epidemic has put Asian oil and gas demand growth back in the spotlight – this time as a spoiler not the savior it has been in the last three decades. That period had its scares – the Asian financial crisis of 1997-98 and the global financial crisis of 2008-09 – but Asian demand could generally be relied upon to buoy growth and bounce back quickly after crises. In the wake of COVID-19, forecasts of an economic rebound in China by mid-year may be correct, but certain structural factors could alter the longer-term trajectory of demand growth. For OPEC and the oil markets, the conditions make for an uncertain 2020.