Turkey Secures Long-Term LNG Supply Deal with TotalEnergies

Turkey has signed a 10-year liquefied natural gas (LNG) supply agreement with France’s TotalEnergies SE, marking a significant step in its bid to become a major regional gas hub. This deal, which commences in 2027, includes provisions for redirecting some cargoes to Europe. It is the second LNG agreement this month as Turkey advances its efforts to enhance its role in the energy sector.

Expansion of LNG Network in Turkey

The agreement covers 1.6 billion cubic meters of LNG annually. Under the deal, state-run gas company Botas will have the option to receive some shipments directly at U.S. ports and others at terminals in Turkey and Europe.

Additionally, some of this gas may be redirected to Egypt, according to sources familiar with the discussions who requested anonymity due to the confidential nature of the negotiations. Ankara and Cairo are discussing LNG cooperation following their recent political rapprochement.

Botas has been actively pursuing new LNG agreements this year, aiming to diversify from its historical dependence on pipeline gas from Azerbaijan, Russia, and Iran. This diversification strengthens Turkey’s position in upcoming contract renewals with Moscow and Tehran, which are set to expire in 2025 and 2026.

The deal with TotalEnergies, similar to an agreement signed with Shell earlier this month, enhances Botas’s gas trading portfolio. Last year, Botas also secured small export contracts with Bulgaria, Romania, Hungary, and Moldova.
Energy Minister Alparslan Bayraktar emphasized Turkey’s strategy, stating, “We are creating a Turkish Blend by mixing gases from different sources in Turkey.” He added that Botas could sign additional supply agreements, allowing the company to offer this diverse gas mix to customers in Europe, particularly in Southeast Europe where there is high demand.

Turkey continues to invest significantly in new storage and LNG facilities, as well as exploration and production in the Black Sea, to solidify its position as a key gas hub at the European Union’s doorstep.

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