The Turkish state-owned company Botas has signed another long-term contract with Western LNG trading companies. As a result, their deliveries from 2027 will amount to more than 9 billion cubic meters per year — 67% of the current LNG imports into the country.
The state-owned company Botas has signed a ten-year agreement with the French TotalEnergies to supply 16 batches of LNG (about 1.6 billion cubic meters) per year for 10 years, starting in 2027. This is reported by Botas.
"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 port of loading by ships. In addition, thanks to the additional operational and commercial opportunities acquired, BOTAS will strengthen its position in the global market," the Turkish state—owned company reports.
Earlier this year, Botas has already signed long-term contracts with the American ExxonMobil and the Dutch-British Shell for 3.5 and 4 billion cubic meters per year in the form of LNG. Deliveries will also begin in 2027, when the company will have only one contract for LNG imports — for 1.4 billion cubic meters per year from Oman. The current agreement with Algeria for 4.4 billion cubic meters will expire by this time.
The total supplies of Western companies will amount to 9.1 billion cubic meters per year. This is 67% of current LNG shipments to the country in annual terms. Previously, Turkey bought liquefied gas either on the spot market or held tenders.
Long-term contracts will allow the Turkish state-owned company to have a more stable price, despite the fact that LNG received from Shell and TotalEnergies can be re-exported to other countries, which, as experts noted, is beneficial in terms of creating a gas hub in the country.
Alexey Grivach, Deputy Director of FNEB, noted to EADaily that long-term LNG contracts for Turkey do not fundamentally change anything, since volumes cannot be compared with either Russian or Azerbaijani ones.