In a significant move to secure long-term energy supplies, Turkish energy company Boru Hatları ile Petrol Taşıma AŞ (Botas) has signed a 10-year agreement with France’s TotalEnergies to purchase 16 billion cubic metres of liquefied natural gas (LNG). The landmark deal, set to commence in 2027, was cemented in the presence of Turkish Energy and Natural Resources Minister Alparslan Bayraktar, as reported by Anadolu Agency.
Minister Bayraktar highlighted the flexibility and competitiveness of the deal’s terms, affirming that it will substantially lower gas prices in Turkey over the long run. The financial specifics of the agreement were not disclosed.
This strategic alliance with TotalEnergies is part of a broader initiative by Botas to diversify and secure its energy supplies. Earlier this month, Botas struck another deal to buy up to four billion cubic metres (bcm) of LNG from British energy powerhouse Shell. Additionally, in May, the company secured an arrangement with U.S.-based ExxonMobil for an annual supply of 3.2 bcm of LNG.
Turkey stands as Europe’s fourth-largest natural gas market, with an annual consumption rate of 50-55 bcm. Minister Bayraktar underscored Ankara’s dedication to renewing contracts related to existing pipelines and obtaining gas from the most competitive and affordable sources.
Expanding on this, a recent statement from TotalEnergies revealed that this agreement represents a deepening of their presence in the Turkish market, aligning with their global strategy to expand LNG operations and support energy transitions worldwide. The French energy giant noted that this deal would not only bolster Turkey’s energy security but also exemplify the growing Franco-Turkish energy cooperation.
Observers note that these agreements reflect a strategic pivot for Turkey, ensuring energy security amid global market volatilities and transitioning towards more sustainable and cost-effective energy solutions. The collaboration between Botas and international energy giants signals a promising trend towards enhanced energy partnerships and economic stability in the region.