Oil & Gas

Turkey plans to expand long-term liquefied natural gas (LNG) purchase agreements to meet domestic energy demand as existing import contracts with Russia near their expiration.

Ankara is focusing on increasing supply agreements with two leading arab nations Algeria and Qatar along with a few other countries, including an african nation.

According to the report "developments in the arabic and global liquefied gas markets in the first half of 2024" by the specialized energy platform's research unit (based in washington), ankara was the top importer of algerian liquefied gas in the first half of this year.

As Turkey seeks to boost lng imports, it is also working to increase domestic gas production. the sakarya field in the black sea is set to receive a new platform in two years, which will significantly enhance the country’s gas output. the new supply agreements, expected to be signed with algeria, qatar, nigeria, and the united states, will secure supplies until 2037 and are projected to provide between 5 billion and 6 billion cubic meters per year, meeting up to 13% of energy demand.

Currently, Turkey relies on a mix of gas imported from russia, azerbaijan, and iran, as well as liquefied natural gas. the expansion of Lng imports will allow turkey to reduce pipeline imports, particularly important as gas consumption exceeds 50 billion cubic meters per year. concurrently, a new fpso unit is set to arrive in october, which will be installed at the sakarya field and is expected to boost gas production to 20 million cubic meters per day.