Turkey inked a spate of LNG and pipeline agreements during the GastechConference and Exhibition in Milan, Italy, with Turkish Energy Minister Alparslan Bayraktar announcing the major pacts. The agreements are set to secure a steady medium-term natural gas supply to the country, with 15 billion cubic metres (bcm) of LNG to begin flowing in the winter of 2026 through 2028, Reuters reports.
The rationale: Ankara is eyeing a role as a re-exporter of natural gas to Europe, as it consumes less gas than its total capacity allows, S&P Global reported last year, citing comments by Bayraktar. Turkey’s natural gas consumption remains steady at approximately 50 bcm per year. Its robust infrastructure — consisting of five LNG import facilities — yields a spare import capacity of 25-30 bcm per year, Bayraktar said.
Here’s a rundown of the agreements:
#1- BP will supply 4.8 bcm of LNG: Turkey’s state-owned Botas has signed a three-year agreement with energy giant BP, clinching 1.6 bcm of LNG per year — bringing the total supplied volume up to 4.8 bcm, according to a Bayraktar statement.
#2- Shell will supply 2.4 bcm of LNG: Botas has signed a three-year agreement with energy giant Shell, securing a 2.4 bcm supply of LNG, according to a statement.
#3- Botas + Sefe ink 1.8 bcm LNG pact: Botas has signed a three-year LNG supply agreement with Securing Energy for Europe (Sefe), securing 600 mn cubic meters (mcm) of the fuel per year — resulting in a total supply of 1.8 bcm over the contract period, according to a statement .
#4 – Equinor to supply 1.5 bcm: Botas has signed a three-year LNG supply agreement with Norway’s Equinor, supplying Ankara with 1.5 bcm of the fuel, according to a statement .
#5 – Cherniere is pitching in 1.2 bcm: Botas has inked a purchase agreement with US-based Cherniere, securing 1.2 bcm of LNG, according to a Bayraktar statement. The move is a bid to widen the nation’s energy portfolio diversity.
#6 – Botas + ENI ink 1.5 bcm LNG pact: Botas signed a three-year agreement with Italian energy player Eni to supply 500 mcm of LNG per year — bringing the total to 1.5 bcm over the contract period, according to a Bayraktar statement.
#7 – Botas + Hartree seal 600 mcm pact: Botas signed a two-year LNG supply agreement with energy and commodities firm Hartree, securing 600 mcm of the chilled fuel, according to a Bayraktar statement.
#8 – Ditto for Jera: Botas signed an agreement with Jera — Japan’s biggest power producer — for the supply of 600 mcm of LNG, according to a Bayraktar statement.
#9 – A 183-km pipeline: The Turkish Petroleum Offshore Technology Center (TP OTC) signed an agreement with Italian engineering group Saipem to build a 183-km natural gas pipeline, according to a Bayraktar statement. TP OTC awarded Saipem a USD 1.5 bn contract to continue developing Turkey’s Sakarya gas field, from which the slated pipeline will convey natural gas back to shore, Reuters reports.
#10 – Botas + Oman LNG team up: Botas and Oman LNG signed an agreement to boost cooperation on FSRUs and LNG transport vessels, and to consider LNG purchasing agreements, according to a Bayraktar statement.
#11- US player eyes a piece of Turkey’s future re-exports: The US-based Argent LNG, the developer of a mega LNG facility in Louisiana, also signed a market participation agreement with Turkish energy bourse Enerji Piyasalari Isletme AS, Reuters reports. The agreement is expected to pave the way for Argent LNG’s plans to supply Europe with the equivalent of 5 mn tonnes of nat. gas per annum.