The disruption of Iranian gas supplies to Turkey, blamed on a technical hitch in the pipeline between the two neighbors, has turned into an energy crisis for many industrial enterprises across the country, putting Ankara’s contingency plans and risk management capacity under the spotlight.

After Iran cut the flow Jan. 20, Turkey’s state pipeline operator BOTAS slashed gas supplies to industrial zones by 40%. Supplies to gas-fueled power plants were then halted, followed by a decision to cut electricity supplies to industrial zones for three days. BOTAS announced Jan. 28 that the flow of Iranian gas had resumed in small amounts as a test run and the cut for industrial consumers was reduced to 20% as of Jan. 31. The energy crunch hit production at hundreds of enterprises at a time when Turkey’s industry is already grappling with economic turmoil and skyrocketing gas and electricity prices, raising questions over Ankara’s energy ties with Tehran and its energy policies.

With a gas consumption of up to 60 billion cubic meters per year, Turkey is a major market for gas suppliers. Gas is used widely for household heating and industrial production as well as for 40% of power generation in the country. Iranian supplies account for up to 10% of Turkey’s consumption. In 2020, for instance, Turkey consumed some 48 billion cubic meters of gas, with Iran supplying 5.3 billion cubic meters.

Unlike Russian and Azeri gas supplies, the pipeline with Iran has seen temporary disruptions ever since it became operational in 2001. Increased domestic consumption in Iran due to harsh weather has often been blamed for drops or halts in the flow to Turkey.