BOTAS and TotalEnergies Sign Major LNG Deal at Gastech 2024
At the Gastech 2024 energy forum in Houston, BOTAS and TotalEnergies signed a landmark agreement for the supply of liquefied natural gas (LNG) over the next 10 years. This agreement promises to deliver 16 billion cubic meters of LNG to Turkiye, starting from 2027, significantly boosting the country’s energy security and diversification efforts.
A Key Step in Turkiye’s Energy Strategy
Energy and Natural Resources Minister Alparslan Bayraktar emphasized the importance of diversifying energy sources to protect Turkiye from the fluctuations of the global energy market. He noted that securing LNG from various global suppliers is a critical part of this strategy.
Infrastructure Investments
Turkiye has made significant investments in energy infrastructure over the years to meet its natural gas demands. The country’s ability to supply half of its annual gas consumption through LNG is the result of these long-term projects.
- Key Investment Highlights:
- Annual LNG supply capacity meets half of Turkiye’s gas needs.
- Focus on flexibility and competitive pricing for long-term gas supplies.
16 Billion Cubic Meters of LNG Over a Decade
The agreement with TotalEnergies will see the delivery of approximately 1.6 billion cubic meters of LNG each year for the next 10 years, starting from 2027. Minister Bayraktar highlighted the flexibility and competitive nature of the agreement, stressing its contribution to Turkiye’s goal of reducing gas prices.
Long-Term LNG Supply Deals
This deal marks a shift from Turkiye’s previous spot LNG purchases towards longer-term agreements. The agreement with TotalEnergies is expected to help stabilize energy prices in Turkiye, ensuring a reliable gas supply.
Turkiye’s Position as a Key Gas Market in Europe
Turkiye is the fourth largest natural gas market in Europe, consuming between 50 and 55 billion cubic meters annually. With its strategic location and growing energy infrastructure, Turkiye has also positioned itself as a gas supplier to Europe.
- Turkiye’s Gas Market:
- Ability to supply over 50 billion cubic meters of gas.
- Mix of gas from different sources, referred to as the “Turkish blend.”
- Current exports to Bulgaria, Romania, and Hungary.
Future Growth in LNG Exports
Turkiye aims to increase its LNG exports to European customers, especially in Southeast Europe, where demand for natural gas is high. Current export volumes to neighboring countries like Bulgaria and Romania are expected to grow as the country ramps up its supply capabilities.
Ongoing LNG Agreements
In addition to the TotalEnergies agreement, BOTAS has been actively signing new LNG supply deals. Earlier in 2024, BOTAS signed agreements with ExxonMobil and Shell for the supply of LNG, further strengthening Turkiye’s energy portfolio.
- Recent LNG Deals:
- ExxonMobil: 10-year, 2.5 million tons of LNG annually.
- Shell: 10-year, 4 billion cubic meters of LNG annually starting in 2027.
Conclusion
The long-term LNG deal between BOTAS and TotalEnergies is a major milestone for Turkiye’s energy strategy, positioning the country as a key player in the global energy market. Through diversification and infrastructure investments, Turkiye is securing its energy future while expanding its role as a gas supplier to Europe.
Source: Trthaber / Prepared by Irem Yildiz