 supply agreement with British oil major Shell on Monday, marking a significant step in Turkey’s ambition to become a regional gas hub, Bloomberg reported.){kind=link}
Turkey’s state energy company, Botaş, signed a 10-year liquefied natural gas (LNG) supply agreement with British oil major Shell on Monday, marking a significant step in Turkey’s ambition to become a regional gas hub, Bloomberg reported.
The deal, which was signed in Ankara, will see Shell supply Turkey with approximately 4 billion cubic meters of LNG annually starting in 2027, representing around 8 percent of Turkey’s total gas demand in 2023, according to data from the national energy regulator.
The agreement includes an option for Shell to redirect shipments to European terminals, enhancing Botaş’s capabilities in LNG shipping and trade, Energy Minister Alparslan Bayraktar said during the signing ceremony.
Bayraktar highlighted the strategic importance of the deal, stating it would strengthen Botaş’s role in regional natural gas trade. He also noted Turkey’s ongoing efforts to expand its LNG infrastructure and gasification capacity, aligning with the country’s broader goal of becoming a key energy supplier to Europe.
This agreement follows Botaş’s earlier 10-year LNG deal with ExxonMobil, signed in May, under which Turkey will receive up to 2.5 million tons of LNG per year from the US company.
Turkey currently meets a substantial portion of its gas needs through LNG imports, with 14.3 billion cubic meters, or 28.3 percent of the 50.5 billion cubic meters consumed last year, coming from LNG.