Oil & Gas

Turkey's national energy company, Botaş, has secured a long-term liquefied natural gas (LNG) deal with France's Total Energy. The agreement, which is set to commence in 2027 and extend for a decade, will see Total supply Turkey with 1.6 billion cubic meters of LNG annually, equivalent to approximately 1.1 million tons divided into 16 cargoes. This contract is notable for being one of four LNG agreements Turkey has finalized in recent months as it strives to enhance its energy independence and establish itself as a regional gas export hub.

The signing of this deal occurred during Turkish Energy Minister Alp Arslan Bayraktar's visit to the United States for the Gastech conference in Houston. The partnership reflects Turkey's strategic ambitions to meet its domestic energy needs and subsequently export surplus gas to neighboring regions, including Europe and Egypt. The agreement also facilitates deliveries via ports in the U.S., Turkey, and Europe, thereby increasing Turkey's flexibility in managing its LNG resources.

Minister Bayraktar emphasized the significance of this deal for Turkey's energy security and resource diversification. He expressed optimism that the agreement would not only bolster the country’s energy infrastructure but also enhance its standing in the global LNG market. Total Energy, through this partnership, aims to solidify its long-term presence in Turkey, benefiting from reduced exposure to volatile gas prices in the spot market.

Turkey’s recent LNG agreements contribute to its broader strategy of diversifying energy sources, reducing reliance on pipeline imports from Azerbaijan, Russia, and Iran. In addition to the deal with Total Energy, Botaş has previously signed contracts with other major players like Shell and Oman, securing significant volumes of LNG for the coming years. This proactive approach positions Turkey favorably for upcoming negotiations on existing supply contracts with Russia and Iran, which are set to expire soon, while also creating opportunities for exports to Southeast Europe and beyond.