Turkish energy company BOTAŞ has entered a ten-year contract with French oil major TotalEnergies to purchase LNG, starting in 2027, Turkish Energy Minister Alparslan Bayraktar announced on Wednesday.
Bayraktar revealed that the agreement, finalised during the Houston GasTech conference, involves the annual import of 1.6bcm of LNG in 16 separate shipments.
Speaking via social media platform X, Bayraktar said his company’s “long-term LNG agreements are of great importance in ensuring the energy supply security of both our country and our region, increasing our resource diversity and providing flexibility to our energy supply.”
TotalEnergies stated that this agreement enables the company to enhance its long-term presence in the Turkish LNG market.
Natural gas plays a crucial role as a transitional energy source, addressing the intermittency of renewable energy sources and reducing emissions by helping to replace coal in electricity generation.
“We are pleased to initiate a new long-term collaboration with BOTAŞ,” said Gregory Joffroy, senior vice-president at TotalEnergies LNG, in a statement, adding that the deal “enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations”.
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By GlobalData
Turkey relies on Russia, Iran and Azerbaijan for most of its gas imports but aims to diversify its long-term supply as several contracts expire next year.
On Wednesday, the strategically important nation signed its fourth major LNG deal of the year, following agreements with Oman, ExxonMobil and Shell.
In April, BOTAŞ secured a ten-year LNG agreement with Oman and later with ExxonMobil. This month, the company also agreed a ten-year deal with Shell, starting in 2027.
According to multiple media reports, Bayraktar said the company had the “capability to provide (natural gas) to European markets, particularly those in south-east Europe that require gas”.
According to the International Energy Agency, Türkiye used 48.4 bcm of natural gas in 2023. Peak consumption occurred in 2021, when it used more than 57bcm.
Türkiye has been working on enhancing its infrastructure for the processing, storage and distribution of LNG. This involves constructing reserves to be used in times of high demand.
