After Russia proved the blood sucking Turks buy oil from ISIS, earlier today, the Turks responded with threats to, err, freeze their own people.
Russia imposed sanctions on some Turkish goods after Turkey shot down a Russian military jet on Nov. 24, saying it had violated its airspace. Russia refutes that, saying the plane was in Syrian air space.
“Turkish firms are not simply worried about a reduction in LPG deliveries from Russia because of the current (political) situation they are already preparing for this,” one trader who works in the LPG market told Reuters.
“It may be more expensive, but the process of how to ensure future deliveries from elsewhere is being worked out. We are not just talking about deliveries from Algeria, but from the United States as well.”
Apparently, Turkey will find natural gas somewhere else in the world. No word on exactly where they will find it. Nevertheless, for the sake of their famed bathouses, I wish them good luck.
Potentionally bullish for shares of LNG.
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RE: Iran not cutting oil output…. If I said $10 points of downside in the $WTIC would you take the over or under?
Turkey finding an alternative gas source seems unlikely to help $LNG. The most likely alternative is piped gas. There are only two lines into Turkey. Supplier #1 is Russia. #2 is Iran (good luck with that). #3 is Azerbaijan (a fart sized amount). It is trying to ramp up supplies from Turkmenistan (which Russia can pressure).
The most likely sources of liquified gas by sea would be Nigeria or Algeria (closer than the U.S.) but that would be expensive. Russia can squeeze Turkey with energy. But Turkey cannot play its trump card – its control over the Bosporus Straits (very beautiful to see from Istanbul by the way) – without starting an all out war.
Turkey is fucked. Erdogan is delusional.