Turkey, TotalEnergies seal 10-year LNG deal

Turkey and TotalEnergies have signed a 10-year agreement for liquefied natural gas (LNG) supply, set to commence in 2027, with an annual volume of 1.6 billion cubic metres. This contract includes an option to redirect cargoes to Europe and Egypt, marking the second such deal this month as Turkey advances its goal of becoming a regional energy hub.

The state-owned Botas is diversifying its LNG sources, traditionally dominated by pipeline gas from Azerbaijan, Russia, and Iran. This move enhances Turkey’s leverage in renegotiating long-term contracts with these suppliers, set to expire in 2025 and 2026. The TotalEnergies deal follows a similar agreement with Shell and adds to Botas’s expanding gas trading portfolio, which includes recent export deals with Bulgaria, Romania, Hungary, and Moldova.

TotalEnergies did not respond to requests for comment. Turkey is investing significantly in LNG infrastructure and Black Sea exploration to strengthen its position as a key gas hub for the European Union (EU).

Attribution: Bloomberg

Subediting: M. S. Salama