Turkiye Reshapes Energy Landscape with Major LNG Deals
Türkiye is reshaping its energy landscape with significant new LNG deals, aiming to cut dependence on Russian pipeline gas. The move, described as a 'turning point', will see a substantial increase in LNG imports over the next three years.
Currently, pipeline gas accounts for 72% of Türkiye's imports, with Russia supplying a substantial 56%. However, existing contracts with Russia via the Blue Stream and TurkStream pipelines are set to expire this year. To diversify its energy mix and enhance supply security, Türkiye has signed LNG agreements with global suppliers.
The new deals, including a 20-year supply agreement with Mercuria, will bring in around 15 billion cubic meters of LNG over the next three years. BOTAŞ, the state-owned pipeline company, has concluded short-, medium-, and long-term LNG contracts with 12 global suppliers. These include US-based projects like Rio Grande LNG in Texas, where companies like TotalEnergies have secured 20-year off-take agreements. Woodside Energy has also secured a significant long-term LNG contract with Türkiye.
With these agreements, LNG will play a more significant role in Türkiye's energy mix, marking a decisive shift away from heavy reliance on Russian pipeline gas. The country aims to reduce its dependence on Russian gas, thereby strengthening its energy security.
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