Turkey’s state-owned Botaş Petroleum Pipeline Corp. is growing its LNG portfolio and the country’s potential as a natural gas hub with another long-term supply deal with a global market giant.
The firm, which controls Turkey’s extensive natural gas and oil pipelines and terminals, inked a 10-year agreement with Shell plc’s Middle East marketing arm for 4 Bcm, or around 2.9 million metric tons/year (mmty).
Deliveries of liquefied natural gas from Shell’s U.S. portfolio are expected to begin in 2027.
Shell is set to receive a combined 4 mmty in 2027 from NextDecade LNG LLC’s Rio Grande and Venture Global LNG Inc.’s Plaquemines LNG projects, according to Kpler data.
Turkey’s Energy Minister Alparslan Bayraktar said the deal helps furthers the country’s goal of increasing the diversity and flexibility of its gas portfolio, which also means growing its foothold as a hub for LNG shipments to Europe.
“We are also pleased that Botaş will acquire new capabilities in the field of LNG transport via ships by receiving the LNG at the loading port within the scope of the agreement,” Bayraktar said. “Such agreements make significant contributions to the supply security of not only our country but also the region.”
The latest deal builds on agreements Botaş signed with ExxonMobil and Oman LNG earlier in the year.
Turkey imports almost all of its natural gas consumed domestically, primarily from Russia and Algeria. The majority of gas imports arrive via pipeline. However, LNG imports have risen exponentially since 2016, when Turkey received its first cargo from Cheniere Energy Inc.’s Sabine Pass LNG.
The Turkish government has also been working to progress a domestic supply project that could tap the extensive reserves of natural gas in the northwestern portion of its Black Sea territory.
The United States is the second largest supplier of LNG to Turkey, behind Algeria. The country received 10.16 mmt in LNG cargoes last year, more than 3 mmt of which came from the United States.
Gas pipeline infrastructure in Turkey allows for imports from Russia, Azerbaijan, Iran and exports to Greece, Bulgaria and Italy. Turkey has been looking to use its pipeline connections and investments in LNG storage to expand its role as a regional supplier to Europe.
