Turkey is set to sign a liquefied natural gas (LNG) supply agreement with France’s TotalEnergies SE as early as next week, according to reports. The 10-year agreement with state-run importer Botas is anticipated to be finalised during Turkish Energy Minister Alparslan Bayraktar’s visit to the US for the Gastech conference, taking place from Sept. 17-20.
A deal with Total would mark Turkey’s Boru Hatları ile Petrol Taşıma AŞ (BOTAŞ)’s third LNG agreement this year, as Turkey aims to diversify its energy sources and establish itself as a natural gas hub. Just last week, it secured a 10-year supply contract with Shell Plc, set to begin in 2027, following a similar 10-year agreement with Oman in April.
In May, BOTAŞ secured a 10-year LNG supply deal with U.S. major ExxonMobil for up to 2.5 million tons per year. Meanwhile, Shell, alongside TotalEnergies, bp, and Japan’s Mitsui collectively acquired a 40% stake in Abu Dhabi National Oil Company’s (ADNOC) low-carbon intensity Ruwais LNG project earlier this year.
In the Ruwais LNG project, bp, Mitsui & Co., Shell, and TotalEnergies will each hold a 10% equity stake, with ADNOC retaining a 60% majority share. Additionally, ADNOC has secured several new long-term LNG sales agreements with international partners, including commitments for 1 million tonnes per annum (mtpa) with Shell and 0.6 mtpa with Mitsui & Co., bringing the committed production capacity of Ruwais LNG to 70%.
Türkiye’s long-term gas supply agreements with Russia, via the Blue Stream pipeline, are due to expire in 2025, while its contracts with Iran will terminate in 2026. Additionally, Türkiye’s LNG deal with Algeria is set to end in 2027, although the country will continue importing 4.4 billion cubic meters of LNG annually from Algeria until that time.
Türkiye has been actively working to create a gas hub in the western region, to blend gas from multiple sources to establish competitive pricing. Several recently signed LNG agreements include provisions allowing Türkiye to resell surplus gas to third countries.
For instance, gas purchased from Shell could be resold to buyers in the Balkans or other regions if Türkiye’s domestic demand is satisfied.
