Turkey has inked a ten-year agreement with Shell to supply liquefied natural gas (LNG), with an option to redirect shipments to Europe, as part of Ankara’s ambition to become a regional fuel hub.
Announced during a signing ceremony in Ankara, Turkish Energy Minister Alp Arslan Berqdar stated that starting in 2027, Shell will supply approximately 4 billion cubic meters of LNG annually to Turkey’s state-owned Botas.
This volume represents about 8% of the total gas demand in Turkey for 2023, according to data from the national energy regulator.
Berqdar highlighted that the contract includes an option for deliveries to be redirected to European stations outside the Republic, providing Botas with significant capabilities in LNG shipping.
This move underscores the national energy company’s plans to play a more active role in international trade, transitioning from its traditional role of importing shipments for domestic consumption.
The country aims to position itself as a gas hub and a supplier to the European Union (EU). It has heavily invested in enhancing its LNG import capabilities and boosting domestic production in the Black Sea.
Although Turkey currently exports limited quantities of gas to the EU, pipeline capacity limitations on the border with Bulgaria restrict the increase of these flows.
Botas relies on gas imports via pipelines from Russia, Azerbaijan, and Iran, while Algeria and the United States dominate its LNG imports.
In May, the company also signed another ten-year agreement with Exxon Mobil of the USA to supply up to 2.5 million tons of LNG annually.
This strategic move is part of Turkey’s broader effort to diversify its energy sources and strengthen its position in the global energy market.
