{"id":91417,"date":"2025-12-30T00:00:00","date_gmt":"2025-12-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=91417"},"modified":"2025-12-30T07:00:30","modified_gmt":"2025-12-30T07:00:30","slug":"turkey-secures-second-long-term-supply-pact-for-us-lng","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/12\/30\/turkey-secures-second-long-term-supply-pact-for-us-lng\/","title":{"rendered":"Turkey secures second long-term supply pact for US LNG"},"content":{"rendered":"

Turkey <\/strong>seals another long-term supply pact for US LNG:<\/strong> Turkey\u2019s state energy firm Botas has finalized a nine-year LNG supply pact<\/a> with Woodside Energy for 5.8 bn cubic meters (bcm) of LNG a year starting in 2030. This marks the fifth major long-term agreement Botas has signed in 18 months, following pacts with ExxonMobil (2.5 mtpa<\/a>), Shell (4 bcm\/y<\/a>), TotalEnergies (1.6 bcm\/y<\/a>), and Mercuria (4 bcm\/y<\/a>).<\/p>\n

\n

Why it matters: Turkey is hedging against Russia dependency<\/p>\n

Turkey is working to diversify its energy sources as it comes under US and EU pressure to end its energy ties with Russia<\/strong>, its largest supplier over the last two decades, accounting for 37%<\/a> of the Turkish market share in 2025. <\/p>\n

The agreement could also be seen as part of Ankara\u2019s effort to gain favor with the <\/strong>Trump <\/strong>administration<\/strong> as it pushes for LNG supremacy as part of its \u201cAmerica First\u201d energy agenda. It is also part of Turkey's commitment to take up nearly 1.5k LNG cargoes<\/a> from the US over the next 15 years as part of what Turkish Energy Minister Alparslan Bayraktar said is an effort to raise bilateral trade volumes to USD 100 bn \u2014 effectively positioning Ankara as a major customer for American energy exports.<\/p>\n

This intentional trade diplomacy doesn\u2019t only cover energy. <\/strong>Placing big jet orders from US-based manufacturer Boeing was on the rise as countries scrambled to appease Trump amid the US tariffs bonanza. Turkey\u2019s flagship carrier placed an order for up to 75 Boeing 787 Dreamliners<\/a> in September, and is considering another order for up to 150 737 Max jets. <\/p>\n

What now? <\/strong>Well, the real question is whether buying that much LNG from the US would be enough to get the US off Ankara\u2019s shoulders on several geopolitically sensitive issues, including its missiles and energy relations with Russia. <\/p>\n

ICYMI- This is Turkey\u2019s second long-term offtake for US LNG<\/strong>, after securing<\/a> a 20-year contract for US LNG from Swiss-based commodity trader Mercuria earlier in September. <\/p>\n

\n

What\u2019s next? Turkey is likely to sustain its Russia energy relations<\/p>\n

Turkey\u2019s endgame for Russia's energy imports is yet to be fully clear<\/strong>, but the temporary extension will give it more buffer time to ramp up its supply diversification efforts before it considers closing the tap on Russian gas or, perhaps, even pursue further extensions, but on more favorable terms. <\/p>\n

Remember the \u201cTurkish blend\u201d remarks? <\/strong>Earlier in October, Bayraktar boasted<\/a> Turkey\u2019s role in supplying Europe with natural gas through the Tanap pipeline in the Caspian Sea, adding that Ankara will be exporting surplus to Europe in what he described as the \u201cTurkish blend\u201d \u2014 created by mixing gas from different countries. The remarks, which are actually in line with new EU regulations on hydrogen and natural gas, raised concerns<\/a> that Turkey may use this \u201cTurkish blend\u201d model to sneak Russian oil into the EU.<\/p>\n

\n

Background<\/p>\n

Turkey appeared to be gearing up to let its Russia natural gas contracts for some 16 bcm <\/strong>expire this year<\/strong>, but the Turkish government extended its agreement with Gazprom for an extra year for an even larger volume of 22 bcm. This came despite securing 15 bcm<\/a> worth of short and long-term gas supply pacts in September. <\/p>\n

Ankara wants to cement its role as a re-exporter of natural gas to Europe<\/strong>, as it consumes less gas than its total capacity allows. Turkey\u2019s natural gas consumption remains steady at approximately 50 bcm per year. Its robust infrastructure \u2014 consisting of five LNG import facilities \u2014 yields a spare import capacity of 25-30 bcm per year. <\/p>\n

REMEMBER- <\/strong>The EU is weighing sanctions<\/a> on Turkish terminals, such as an under-the-radar terminal operator called Turkis Enerji, suspected of funneling Russian fuel into Europe through back channels.<\/p>\n","protected":false},"excerpt":{"rendered":"

The agreement comes as Turkey navigates rising Western pressure to sever its Russia energy 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