Last month, Türkiye secured two 10-year LNG agreements with Shell and TotalEnergies, despite not facing an immediate gas shortage. Experts note that Türkiye, heavily reliant on energy imports, is proactively diversifying supply sources amidst regional conflicts and global energy uncertainties.
Türkiye imports gas through international pipelines under long-term contracts, several of which will expire soon. “These LNG deals align with Türkiye’s strategic goals,” explains Dr. Cihad Terzioglu, an Istanbul-based energy expert. “Besides leveraging flexible pricing, Türkiye will utilize global ports, positioning itself as a key energy player.”
LNG, or liquefied natural gas, is methane cooled for transport in specialized ships. Türkiye’s Ministry of Energy and Natural Resources secured these agreements amid a tight LNG market, as European nations look to procure LNG before the Ukraine-Russia pipeline deal expires.
BOTAS, Türkiye’s state pipeline operator, signed a deal with Shell on September 2 for up to 4 billion cubic meters of LNG annually, starting in 2027. Two weeks later, BOTAS finalized another agreement with TotalEnergies for 1.6 billion cubic meters annually, also beginning in 2027. These deals are part of Türkiye’s broader strategy to diversify energy imports; in May, BOTAS also reached a decade-long agreement with ExxonMobil for 2.7 billion cubic meters annually.
Türkiye’s energy needs are growing due to limited domestic resources and rising industrial demands. Last year, Türkiye imported 50.48 bcm of natural gas, with 71.73% sourced through pipelines and 28.27% as LNG from 21 countries. Russia was the top supplier, followed by Azerbaijan, Algeria, Iran, and the U.S.
Domestic gas production has increased due to the Sakarya Gas Field in the Black Sea, and Türkiye aims to become a regional gas hub. Boasting an extensive pipeline network, Türkiye is investing in LNG facilities to meet the demands of a global shift toward electric vehicles and renewable energy. According to Terzioglu, Türkiye’s progress as an energy hub is notable, with strategic investments in renewables, storage, and electric vehicle technologies.
The recent LNG deals may strengthen Türkiye’s position in future pipeline negotiations, particularly for the BlueStream and TurkStream projects from Russia, set to expire in 2025. Türkiye is also eyeing potential re-export markets, especially in southeastern Europe, where gas demand is high. Türkiye’s surplus capacity of 25 bcm beyond its annual 50 bcm consumption can help meet these needs, according to Turkish Energy Minister Alparslan Bayraktar.
