Türkiye signs second long-term LNG deal in less than a month

Türkiye has taken a significant step towards diversifying its energy sources by securing a 10-year liquefied natural gas (LNG) supply agreement with French energy giant TotalEnergies.

The deal, announced on Wednesday by Türkiye’s Energy Minister Alparslan Bayraktar, is part of the country's ongoing efforts to reduce its heavy reliance on Russian gas and enhance energy security.

The agreement, signed between Turkish state oil and gas company BOTAS and TotalEnergies during the Gastech industry conference in Houston, Texas, will see Türkiye receiving 16 LNG cargoes annually starting in 2027.

These cargoes will deliver up to 1.6 billion cubic meters of gas per year. The agreement with TotalEnergies comes two weeks after Türkiye signed a 10-year LNG agreement with British oil major Shell.

Increasing the number of suppliers

Minister Bayraktar emphasised the importance of the deal, noting on social media platform X that it will play a critical role in bolstering Türkiye’s energy supply security and increasing resource diversity.

"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.

Türkiye currently imports natural gas through pipelines from Azerbaijan, Iran, and Russia, with nearly half of its gas coming from Russia.

However, the country is keen to reduce its dependence on any single supplier. Türkiye also purchases LNG from various global suppliers, including Qatar, Nigeria, Algeria, and the United States.

The long-term agreement with TotalEnergies not only helps Türkiye diversify its gas supplies but also reduces exposure to volatile spot market prices.

Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, said: "This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations."