Turkey’s ambitions to become a regional gas hub have gained new momentum following the signing of a 10-year agreement with French energy giant TotalEnergies, according to reports. Under the deal, TotalEnergies will supply Turkish state energy firm BOTAS with 1.1 million metric tons of liquefied natural gas (LNG) annually for 10 years, starting in 2027. This marks BOTAS’s fourth long-term import agreement with non-state-owned firms this year, following a similar deal with Shell.
“We are pleased to initiate a new long-term collaboration with BOTAŞ, a key partner for the Company in Türkiye. This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations,” said Gregory Joffroy, Senior Vice President, of LNG at TotalEnergies.
Turkish Energy Minister Alparslan Bayraktar stated that these agreements will provide Turkey with an additional 25 billion cubic meters (bcm) of gas, on top of its annual consumption of 50 bcm. This surplus will offer Turkey greater flexibility in future negotiations, including the possibility of reducing imports from Russia and Iran, with contracts set to expire in 2025 and 2026.
In July, Turkey said it was set to significantly increase natural gas exports to the European Union. Eager to enhance its leverage with Brussels, Ankara is seeking demand guarantees before committing to the necessary infrastructure investments. In an interview with Bloomberg, Bayraktar emphasised the potential for increasing exports to the EU via Bulgaria to 10 bcm annually, though current capacity stands at just 3.5 bcm. He noted that from a technical perspective, Turkey can enhance this interconnection.
Turkey is showing interest in offshore gas fields in Egypt to supply hydrocarbons through its Floating Storage and Regasification Unit (FSRU) vessels, according to Bayraktar. The country has been actively pursuing the creation of a gas hub in its western region, aiming to blend gas from various sources to establish more competitive pricing.
Several recently signed LNG agreements include clauses that allow Türkiye to resell surplus gas to third countries. For example, gas purchased from Shell could be resold to buyers in the Balkans or other regions if Türkiye’s domestic demand is met.
