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US-based Argent LNG has signed an agreement to supply 5 million metric tons of liquefied natural gas to Turkey’s state energy exchange, the Energy Markets Management Co. (EPİAŞ), Reuters reported on Tuesday.
The deal was announced at the Gastech energy conference in Milan. Argent LNG, which is building an export terminal in Louisiana, described the agreement as a way to channel American gas into southeastern and central Europe through Turkey.
Argent LNG Chief Executive Jonathan Bass told Reuters the deal was “a big geopolitical move” to position US gas as a backup supply for European Union countries. He said the arrangement could also allow gas to reach neighboring Syria through Turkey, bypassing a direct agreement with Damascus. The United States has begun lifting sanctions following the fall of Syrian President Bashar al-Assad, but obstacles to trade remain.
Turkey, which consumes around 50 billion cubic meters of natural gas each year, imports most of its supplies through pipelines from Russia but also relies heavily on LNG, which accounts for about one-third of imports. The country operates three LNG terminals through its state pipeline company BOTAŞ.
Ankara has ambitions to become a regional energy hub and has expanded cooperation with US companies. Last year, it signed a 10-year LNG deal with ExxonMobil and an oil exploration agreement with Continental Resources.
Turkey has also started exporting gas to Syria. In August, Ankara began sending 1.2 billion cubic meters of Azerbaijani gas across the border as it seeks a role in the country’s post-war reconstruction.