Turkey inks a slew of LNG supply agreements as it ramps up re-export hub plans

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TODAY: Turkey’s LNG re-export ambitions loading

Good morning, friends. We’re heading into the weekend with a bang from Turkey after it secured supply agreements for some 15 bcm of LNG, bringing the country closer to its re-export hub ambitions. Today’s brisk read also features zones and startup updates from Egypt, as well as a deep dive into how surging demand for sanctioned oil is shifting the basics of asset valuation for the shipping industry. Shall we?

WATCH THIS SPACE-

#1- Iraq is expecting bids from undisclosed global and regional shipyards to manufacture eight vessels — set to operate under the country’s almost completed Grand Faw Port, the Transport Ministry’s Media Office Director Maytham Al Safi told Al Sabah. The vessels aim to bolster the country’s maritime sector and expand its existing fleet as Iraq gears up to launch operations of the Grand Faw Port in 2026.

REFRESHER- Iraq’s General Company for Iraqi Ports is reportedly close to selecting a global operator for Grand Faw, with no timeline disclosed. The mega-port will serve as a key enabler of Iraq’s Development Road Project — which aims to position the country as an intermodal transhipment hub connecting to Turkey via road and rail covering 1.2k km.

#2- Egypt-incoming LNG shipments are set to fall by a third in the last quarter of the year, with the country expected to receive around 40 shipments in the post-peak summer period, a government source told EnterpriseAM.

But we may not need to follow through on all these shipments, as the contracted shipments have flexible terms in the event of fluctuating local production and demand, our source told us. Winter could also see Eni and Shell portioning out a share of production for export as LNG.

Whether it’s 40 or 60 shipments a month, Egypt is ready, with three operational regasification vessels ready to process the shipments and a fourth that will join them this month to bring total daily capacity to 2.7 bn cubic feet of gas, we were told.

ALSO FROM EGYPT- The government is studying a temporary 200-day safeguard tariff on hot-rolled steel imports, Asharq Business reports, citing an unspecified government document. The proposed 13.6% tariff is meant to address the damage caused by a recent glut of these imports that undercut local producers.

#3- Israel launched a wave of airstrikes on Yemen yesterday — its second in a few days — killing 35 and injuring over 100, the Associated Press reports. The strikes came in retaliation against a Houthis-launched drone attack that hit an Israeli airport earlier this week. The attack on Yemen comes one day after Israel launched an unprecedented airstrike in Qatar, targeting Hamas leadership in Doha.

REMEMBER- Israeli airstrikes have hit half a dozen countries in the region so far, raising regional tensions that have led to multiple airspace shutdowns disrupting aviation flows. Meanwhile, the Houthis have been disrupting trade and shipping in the Red Sea route in protest of Israel’s war in Gaza.

#4- Airbus is still committed to its delivery targets this year, despite persisting delays in engine deliveries, Reuters reports, citing remarks made by CEO Guillaume Faury to journalists during the Global Aerospace Summit in DC. “As long as we don’t have the engines, we know there is still uncertainty remaining,” but there’s reason for optimism, Faury said, pointing to the drop in the number of completed aircraft frames that are waiting idle due to delayed engine deliveries. The European aircraft producer wants to deliver 820 jets in 2025.

Meanwhile, Airbus is looking for an expanded production capacity of its narrowbody A320 neo models, as it works towards the expected launch of a second China assembly line in 4Q 2025. The new assembly plant launch comes at a time when demand for long-haul flights is bouncing back, Faury explained.

DATA POINT- Airbus delivered 306 jets in 1H this year, a 5% y-o-y increase, but its July deliveries fell by 13% y-o-y.

MARKET WATCH-

#1- Oil prices went down this morning amid signs of global oversupply and weakening US demand, Reuters reports. Brent crude futures increased by USD 0.14 to reach USD 67.35 / bbl by 04.33 GMT, while US West Texas Intermediate (WTI) gained USD 0.15 to trade at USD 63.53 / bbl.

Expect oversupply in 2026: Global crude oil inventories are set to expand by more than 2 mn bbl / d through the first quarter of 2026, the US Energy Information Administration (EIA) said in its latest short-term energy outlook (pdf). The agency had previously expected the surplus in 4Q 2025, but revised its view as supply growth outpaces demand. The updated forecast doesn’t yet factor in the additional production that Opec recently agreed to roll out.

The accumulation of inventories is expected to weigh on prices, with Brent seen averaging USD 51 / bbl next year — well below its current USD 66.50 / bbl, according to the EIA outlook. The agency added that the market imbalance could force Opec+ and other producers to dial back output later in 2026 to stabilize prices.

Some forecasts see prices in the 50s: Goldman Sachs also expects an oil surplus in 2026, revising its estimate to 1.9 mn bbl / d, and sees Brent averaging USD 56 / bbl in 2026. S&P Global is also projecting weaker crude prices by year-end, with dated Brent seen falling toward USD 55 / bbl as Opec continues to release additional supply.

Can China help? China’s stockpiling of crude oil, which absorbed surplus supply throughout this year, is expected to persist at a comparable pace into 2026, Reuters reported citing Gunvor head of research Frederic Lasserre.

PSA-

Maersk revises PSS: Shipping giant Maersk has revised its peak season surcharge (PSS) for cargo traveling from the Indian Subcontinent and the Middle East to the US and Canada’s East and Gulf coasts — applicable starting 3 October, according to a statement. For cargo coming from the UAE, Yemen, Oman, Iraq, Kuwait, Jordan, Saudi Arabia, Qatar, and Bahrain, a USD 1k PSS applies to 20-ft and 40-ft dry containers, along with 40-ft and 45-ft high cube dry containers, while a USD 1.3k PSS applies to 20-ft reefer containers and 40-ft high cube reefer containers.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Smart Ports and Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts, and policymakers to explore smart port solutions, port operations, and logistics within Saudi Arabia.

The UK will host the London International Shipping Week on Monday, 15 September until Friday, 19 September in London. The event will host shipping and maritime industry decision makers to attend several industry related events and seminars.

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

Turkey will host the Global Freight Summit on Sunday, 28 September until Wednesday, 1 October in Istanbul. The summit will host over 330 attendees and over 250 firms for policy and knowledge and strategies exchange between forwarding partners.

The UAE will host the African & Middle East & Islamic Finance Aviation 100 Awards on Monday, 29 September until Wednesday, 1 October in Dubai. The event aims to highlight and reward the most remarkable transactions closed by airlines and aviation manufacturing and leasing firms.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 1 October and Thursday, 2 October in Dammam. It will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

Turkey inks a spate of a pipeline + LNG supply agreements at Gastech 2025

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.

Sailun Group debuts construction on tires factory at China-Egypt Teda industrial zone

Chinese tiremaker Sailun Group broke ground on its USD 1 bn automotive tire plant in the China-Egypt Teda industrial zone within the Sokhna Industrial Zone, according to a statement. The 350k sqm facility will be developed over three years in three phases.

The details: The first phase is set to come online in 2026, producing 3 mn passenger car tires and 600k truck and bus tires annually, and creating around 1.5k jobs. Once fully operational, the factory will churn out more than 10 mn tires a year for both the local and export markets.

Sailun’s USD 1 bn factory isn’t the only local tire project in the works — and it’s not even the most expensive. Organi Group acquired 50% of Rolling Plus Chemical Industries in March to revive its EUR 1 bn tire factory project in the SCZone in partnership with Concrete Plus. In addition to this, an unnamed Chinese company is reportedly looking to set up a USD 360 mn tire factory in the SCZone in partnership with the state-owned Arab Organization for Industrialization.

Egypt’s Ooaaps eyes USD 2.5 mn in funding by 1H 2026

Ooaaps eyes mns in funding for new warehouse: Egyptian supply chain solutions startup Ooaaps is mulling plans to close a USD 2.5 mn funding round by 1H 2026, co-founder and CEO Momen Rajab told Al Mal. The company is set to launch the funding round in mid-October — led by two local venture capital funds, Rajab added, without disclosing further details.

Where’s the money going? The firm will direct the round’s proceeds towards expanding its customs storage facilities in Egyptian ports. The company is currently in talks with Egypt’s Transport Ministry to set up a 20k sqm warehouse at Alexandria Port, which will store and ship parcels for SMEs. The move comes as the firm plans to increase its total storage capacity to 75k metric tons by 2029.

Ooaaps is currently setting up a dedicated parcel warehouse in Alexandria Port — spanning some 2.4k sqm and scheduled to open next October, Rajab told the outlet. The facility aims to streamline shipping operations and cut costs for SMEs. The integration of maritime shipping routes through its store facilities looks to cut the cost of shipping by nearly two-thirds.

Regional expansion could be on the cards. The firm is mulling setting up offices in KSA and the UAE in 2H 2026, Rajab told the news outlet. Ooaaps is also looking to expand its customer base by up to 50% to 3k, he noted.

About Ooaaps: The firm — established in 2020 — offers its electronic platform to facilitate custom clearance procedures to support export and import companies operating in Egypt. Its automated system allows customers to track shipments, manage inventory, and compile financial records via its digital platform.

Updates on roads, data centers, trade, and maritime from Kuwait, Iraq, and the UAE

ROADS-

CGC clinches contract to implement Dubai road project: The Dubai branch of Kuwait-based Combined Group Contracting (CGC) has secured an AED 104.4 mn contract from Dubai’s Road and Transport Authority (RTA) to implement internal roads in Wadi Al Amardi, on the outskirts of Dubai, according to a statement. The project is expected to be completed within 14 months.

Dubai’s RTA is on a roll this year: The emirate’s RTA has rolled out an ambitious pipeline of road developments and investments in 2025, including an AED 6 bn roads push in cooperation with Dubai Holding, an AED 1.5 bn contract for the Al Fay Street Development Project, and an AED 798 mn upgrade for Al Qudra Street.

DATA CENTERS-

Indian web hosting company NetForChoice launched its first GCC data center in Dubai, according to a statement (pdf). The facility will deliver hosting, cloud, and cybersecurity services with 99.95% uptime, integrating security operations center and network operations center support. It is designed to handle workloads from enterprise resource planning platforms to AI model training, targeting clients across BFSI, healthcare, and other regulated industries.

TRADE-

Iraq’s Border Ports Authority has signed a 14-point agreement with Iran to enhance the countries’ border crossings, Iraq News Agency reports. Here are a few important stipulations:

Digitization collab: Both parties will expedite trade by exchanging electronic cargo manifests with full shipment details;
More timely consultation: Iran will not open any border crossings without prior consultation with the Iraqi federal government;
Both countries’ crossings will operate 24/7 — including Fridays — without imposing extra fees beyond regulations to avoid negative effects on trade.

Iraq + Iran cooperation: Iraq’s oil minister and his Iranian counterpart inked an MoU to enhance cooperation and exchange expertise in several sectors earlier this year. The move bolsters investment in Iraq’s current gas projects amid its plans to become self-sufficient in petroleum derivatives.

SHIPPING + MARITIME-

NMDC, Adnoc L&S partner up on maritime services: The UAE’s National Marine Dredging Company inked a three-year agreement with Adnoc Logistics and Services (Adnoc L&S) to collaborate on providing comprehensive maritime services — including marine services and integrated logistics — for offshore projects, Wam reports.

More offshore moves: The logistics firm’s parent company, Adnoc, recent moves in the offshore segment include a USD 806 mn contract to build three newbuild island rigs as well as a separate USD 1.15 bn contract to operate two jack-up rigs.

Chinese demand surges value of vintage VLCCs willing to brave sanctions

Sanctions drive surge in aging vessels value: Aging very large crude carriers (VLCCs) of 15 years or more, a stable of shadow fleets, are becoming more expensive to buy and deploy as the world’s dark fleets grow due to rising demand, TradeWinds reports, citing a report by maritime intelligence outfit Veson Nautical. Older ships now trade at a premium compared to newer VLCCs that remain compliant with international sanctions, the report said.

Chinese demand is a major driver for this surge, as China orders more vintage units — which now make about 81% of China’s total VLCCs orderbook over the last five years. On the back of this heightened appetite from China, the values of 20-year-old and 25-year-old VLCCs rose by 18.1% and 31.9% respectively, TradeWinds reports, citing Veson Nautical data. This is in contrast to five-year-old VLCCs, whose value only rose 0.5%.

A case in point: A 2007-build with a 307k dwt was purchased in July for USD 44 mn — almost double the median for similar vessels sold between 1992 and 2025. “This [sale] underlines how demand linked to sanctioned trades is reshaping asset values and overturning conventional market logic,” Veson Nautical’s senior vice president of values and analytics Matt Freeman said.

China’s ahead in this game for a reason: Chinese players were able to snap a big number of older VLCCs when they were undervalued, thanks to their ability to make “counter-cyclical purchases” due to the backing of local banks and state-linked leasing firms, the report found. With expanded shadow fleed capacity, China was able to clinch bigger supplies of the undervalued Russian crude, while also serving Indian demand.

Driven by reduced-price Russian crude, the overall oil demand from China and India surged — as both worked to import and store bigger quantities of the cheaper crude. For example, China imported 2.7 mn barrels a month between January 2020 and February 2022 — a figure that more than doubled to 4.2 mn barrels per month from March 2022 to July 2025. For the same period, India’s demand for crude oil skyrocketed by 1,232%, from 405k barrels to 5.4 mn barrels per month.

REMEMBER — The shadow fleet is expanding: The shadow fleet of oil tankers is growing larger — paradoxically — thanks to mounting sanctions levied by Western nations on Russian and Iranian oil operations. While the constant sanction pressure has tempered dark fleets’ annual growth rate, their absolute size is still bigger than it was before sanctions, with operators more efficiently replacing blacklisted vessels with new ones.

DHL acquires healthcare logistics player, EQT secures supply from Commonwealth LNG

Global logistics giant DHL has acquired US-based healthcare logistics player SDS Rx, according to a press release. The acquisition will expand DHL’s life sciences and healthcare operations and services in the US by adding specialty pharma, radiopharma, and health system networks to its portfolio — enabling last-mile delivery services in over 200 locations across the US. DHL did not disclose the value of the acquisition.

Not DHL’s first in 2025: DHL acquired 100% of Cryopdp, a specialty courier of clinical trials, biopharma, and cell and gene therapies, earlier this year. Cryopdp specializes in temperature-controlled transport solutions, delivering temperature-sensitive products for pharma, biotech, and healthcare players.

EQT + Commonwealth LNG sign 20-year SPA: US-based energy firm EQT Corp. has inked a 20-year sales and purchase agreement (SPA) to acquire 1 mn tons per annum (mtpa) of LNG from Louisiana-based Commonwealth LNG ’s export facility, located near Cameron Parish on the Gulf Coast, Reuters reports. The SPA will help EQT acquire LNG on a freeonboard basis to trade its cargo internationally. No investment ticket or timeline were disclosed.

ICYMI- Aramco was looking to ink an agreement with Commonwealth LNG in July to purchase 2 mpta of LNG from the firm’s planned LNG export facility in Cameron, Louisiana. Aramco was also considering pacts with other US LNG export ventures.

Calendar

SEPTEMBER

15 September (Monday): Logistics Leaders Saudi, Riyadh, KSA.

15-16 September (Monday-Tuesday): Smart Ports and Logistics Transformation Summit, Jeddah, KSA.

15-19 September (Monday-Friday): London International Shipping Week, London, UK.

23 September (Tuesday): TradeWinds Shipowners Forum Greece, Athens, Greece.

24 September (Wednesday): Syria Recovery and Investment Forum, Abu Dhabi, UAE.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

25 September (Thursday): World Maritime Day..

28 September-1 October (Sunday-Wednesday): Global Freight Summit, Istanbul, Turkey.

29 September-1 October (Monday-Wednesday): African, Middle East, and Islamic Finance Aviation 100 Awards, Dubai, UAE.

30 September-2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

The International Maritime Organization is set to formally adopt the Net-Zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

1-2 October (Wednesday-Thursday): Saudi Maritime and Logistics Congress, Dammam, Saudi Arabia.

6-8 October (Monday-Wednesday): Maritime Cyprus Conference, Limassol, Cyprus.

7-8 October (Tuesday-Wednesday): Global EV and Mobility Technology (Gemtech) Forum, Riyadh.

7-9 October (Wednesday-Thursday): World Aviation Festival, Lisbon, Portugal.

13-17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

14-16 October (Tuesday-Thursday): AntwerpXL, Antwerp, Belgium.

15 October (Wednesday): Global Trade Review, Cairo, Egypt

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

NOVEMBER

3-6 November (Monday-Thursday): Adipec Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

DECEMBER

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

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