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 key uncertainty following the recent strike against the Khurais and Abqaiq facilities – the heart of Saudi Arabia’s oil industry and a vital spoke in the world’s energy infrastructure – is how the US and its regional partners will respond. Among the mainstream foreign policy thinkers, a consensus appears to be emerging that in order to save US leadership in the global economic and geostrategic arena something must be done to rebuild its credibility and bargaining power, but in novel ways.