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Turkey + TotalEnergies sign LNG supply agreement: French oil giant TotalEnergies has inked a 10-year heads of agreement with Turkey’s Botas Petroleum Pipeline Corporation (Botas) to supply the country with 1.1 mn tons of LNG per year starting 2027, according to statements here (pdf) and here. The financial details of the agreement have not been disclosed.
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The trade strategy: The agreement offers the option to redirect cargoes to Europe and Egypt, Bloomberg reports, citing sources with knowledge of the agreement. The option for EU delivery adds to Botas’ gas trading portfolio with global firms, including its agreement signed with Shell earlier this month to supply some 4 bn cubic meters of gas annually from its US and global portfolio.
Shoring up supplies: Turkey — which typically acquires pipeline gas from Russia, Azerbaijan, and Iran — aims to renew its long-term supply contracts with Moscow and Tehran that are due to expire in 2025 and 2026, Bloomberg writes.
More, more, more: Turkey’s recent LNG agreement with Oman, ExxonMobil, and Shell will boost Turkey’s volume to 25 mn cubic meters (bcm) of surplus gas above the country's annual consumption of 50 bcm, Reuters reports, citing Turkish Energy Minister Alparslan Bayrakta.
Why is this important? Turkey relies heavily on imported gas to meet its consumption needs, and imported 14.3 bn cubic meters in the form of LNG last year, or 28.3% of the 50.5 bcm it used last year, Reuters writes in a separate report.
It’s good for Total, too: The partnership with Botas will enable TotalEnergies to secure more long-term sales and reduce its exposure to sport market gas price fluctuations, TotalEnergies LNG Senior Vice President Gregory Joffroy said in the statement. TotalEnergies is the world’s third largest LNG player, recording nearly 50 mn tonnes per year in 2023 with a 12% market share, according to Reuters.
TotalEnergies has regional footprints: TotalEnergies inked a Sale and Purchase Agreement (SPA) with Oman LNG back in April to offtake 0.8 mn metric tons per annum of LNG for a 10-year period beginning in 2025. TotalEnergies holds a 5.54% stake in Oman LNG. TotalEnergies also reached a Final Investment Decision (FID) on the Marsa LNG project, a joint venture between TotalEnergies and Oman’s state oil company OQ, producing 150 mn cubic feet of gas per day. The FID will see the JV expand production and develop new infrastructure, the statement said.
