Turkey, ExxonMobil pact to curb reliance on Russian energy

Turkey and US energy giant ExxonMobil are in talks to explore a significant deal aimed at purchasing liquefied natural gas (LNG), as part of its strategy to reduce reliance on Russian energy , Reuters reported citing the Financial Times.

Alparslan Bayraktar, Turkey’s Energy Minister, shared with FT in an interview that the nation is striving to diversify its energy sources, aiming to establish a more balanced supply portfolio that diminishes dependency on any single partner.

Bayraktar disclosed that Turkey is contemplating a long-term agreement with Exxon, potentially securing up to 2.5 million tons of LNG annually. The duration of the proposed pact could extend over a decade, although Bayraktar mentioned that the precise commercial terms of the deal with Exxon are still being deliberated.

The timing of Turkey’s discussions with Exxon coincides with a decline in Russian exports to Europe, as European nations augment their LNG procurement from various global suppliers, seeking to decrease reliance on Russian pipeline gas amid the conflict in Ukraine. Data from LSEG indicates a 1.9 per cent decrease in Russian LNG exports to Europe, totaling 15.8 million metric tons in 2023.

Turkey, lacking significant domestic oil and gas resources, heavily relies on imports from Russia, Azerbaijan, Iran, and LNG shipments from Algeria, Qatar, the United States, and Nigeria.