Türkiye’s BOTAS, TotalEnergies sign 10-year LNG deal

Turkish Petroleum Pipeline Corporation (BOTAS) and TotalEnergies signed a long-term liquefied natural gas (LNG) agreement involving the sale of 16 billion cubic meters (bcm) of LNG to Türkiye starting from 2027.

Under the deal, approximately 1.6 bcm of LNG will be delivered to Türkiye annually, across 16 cargoes for 10 years, amounting to a total of 16 bcm over the contract period, Turkish Energy and Natural Resources Minister Alparslan Bayraktar told Anadolu, following the signing ceremony on the sidelines of Gastech 2024 Conference in Houston, US.

The deal, which Bayraktar said has extremely flexible and competitive conditions, will significantly support the goal of making gas cheaper in Türkiye in the long term.

The newest agreement comes just two weeks after a 10-year contract signed with Shell to supply 4 bcm of LNG annually starting in 2027. BOTAS also inked a deal with US-based ExxonMobil in May for an annual supply of 2.5 million tons (approximately 3.2 bcm) of LNG.

– Infrastructure investments crucial for energy security

As a country dependent on energy imports, Türkiye aims to diversify its energy portfolio to avoid market volatility. Infrastructure investment plays a crucial role in that plan, Bayraktar noted.

Türkiye is committed to improving its energy security via increasing infrastructure investments.

Bayraktar highlighted that thanks to such infrastructure investments, Türkiye has the capacity to purchase more than 50 bcm of gas. When combined with domestic production, existing pipelines and supply agreements, the country upped its import capacity to 80 bcm, he added.

Noting that Türkiye is the fourth biggest natural gas market in Europe with a consumption of 50-55 bcm, Bayraktar said, ‘We are at a point where we can export the rest (of the gas) to customers in Europe.’

‘We are creating a ‘Turkish blend’ by mixing gas from different sources in Türkiye and are now in a position to offer this blend to customers in Europe, especially to countries in Southeastern Europe that require gas,’ the Turkish minister said.

The country supplies gas to Bulgaria, Romania and Hungary under current agreements.

Türkiye is currently in the process of renewing the contracts related to existing pipelines and ‘will continue to work to supply gas from the cheapest source under the most competitive conditions,’ Bayraktar said.

Highlighting Türkiye’s objective to diversify gas supplies beyond pipelines to include LNG transported by ships, Bayraktar said that Türkiye’s investments in LNG infrastructures have enabled the country to meet half of its annual gas demand through LNG mports.

Reporting by Sevgi Ceren Gokkoyun in Houston, US

• Alparslan Bayraktar
• LNG
• TotalEnergies
• Turkish Petroleum Pipeline Corporation (BOTAS).
• Turkiye