Turkish state-owned company Botas has signed another long-term contract with Western LNG trading companies. As a result, its supplies from 2027 will amount to more than 9 billion cubic meters per year – 67% of the country’s current LNG imports.
State-owned company Botas has signed a ten-year agreement with French company TotalEnergies for the supply of 16 batches of LNG (around 1.6 billion cubic meters) per year for 10 years, starting in 2027, Botas reports.
“The LNG supply agreement signed with TotalEnergies will increase the diversification and flexibility of the portfolio, and Botas will gain new competencies in the field of LNG transportation by delivering LNG from the loading port by ship. Furthermore, thanks to the additional operational and commercial capabilities acquired, BOTAS will strengthen its position in the global market.” – reports the Turkish state-owned company.
Earlier this year, Botas already signed long-term contracts with the US company ExxonMobil and the Dutch-British company Shell for 3.5 and 4 billion cubic metres per year in the form of LNG. Deliveries will also begin in 2027, when the company will only have one LNG import contract left: 1.4 billion cubic metres per year from Oman. The current agreement with Algeria for 4.4 billion cubic metres will expire at that time.
Total supplies from Western companies will amount to 9.1 billion cubic meters per year. This represents 67% of current LNG shipments to the country in annual equivalent. Previously, Türkiye purchased liquefied gas on the spot market or held tenders.
Long-term contracts will allow the Turkish state-owned company to have a more stable price, while the LNG received from Shell and TotalEnergies can be re-exported to other countries, which, as experts noted, is beneficial in the context of the country’s gas hub.
Deputy Director of the FNEB Alexey Grivach noted EADaily that the long-term LNG contracts for Türkiye do not fundamentally change anything, since the volumes cannot be compared with either Russian or Azerbaijani ones.
