Turkey is a key country in order to realize the Southern Gas Corridor (SGC) due to its geographical location. However, as the main transit country within the SGC, Turkey could potentially exert market power with gas transits. Whether Turkey exerts market power or not, is crucial for an economic...

This work in progress considers the bargaining options of a natural gas transit country. The paper describes the situation with potential hold-up due to asset specific investments and the timing of the hold-up by the transit country