Türkiye Secures 10-Year LNG Supply Agreement with TotalEnergies

Houston, The Gulf Observer: Türkiye has made a substantial advancement in its energy diversification strategy by securing a 10-year liquefied natural gas (LNG) supply agreement with French energy company TotalEnergies. The deal was announced by Türkiye’s Energy Minister Alparslan Bayraktar during the Gastech 2024 event in Houston, Texas.

The agreement, signed between Türkiye’s national oil and gas company BOTAŞ and TotalEnergies, will commence in 2027. Under the terms, Türkiye will receive 16 LNG cargoes annually, amounting to up to 1.6 billion cubic meters of gas per year.

This agreement, which follows a similar 10-year LNG deal with British oil major Shell two weeks ago, is a key component of Türkiye’s strategy to reduce its dependency on Russian gas and enhance its energy security. Minister Bayraktar highlighted the significance of the deal in a statement on social media platform X, noting its critical role in bolstering Türkiye’s energy supply security and diversifying resources.

“Long-term LNG agreements are of great importance in ensuring the energy supply security of both our country and our region, increasing our resource diversity, and providing flexibility to our energy supply,” Bayraktar said.

Currently, Türkiye imports natural gas through pipelines from Azerbaijan, Iran, and Russia, with nearly half of its gas coming from Russia. In addition to this new agreement, Türkiye also procures LNG from global suppliers, including Qatar, Nigeria, Algeria, and the United States.

The long-term agreement with TotalEnergies will not only assist Türkiye in diversifying its gas supplies but also mitigate exposure to volatile spot market prices. Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, emphasized the benefits of the deal, stating, “This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations.”