Turkey's Botas, Shell Agree on Long-Term LNG Supply Deal

Turkish state energy company Botas and British oil major Shell have signed a 10-year liquefied natural gas (LNG) agreement. The deal, which begins in 2027, will see Shell supply Botas with approximately 4 billion cubic meters of gas annually. This volume represents about 8% of Turkey's total gas demand as of 2023.

The agreement, signed in Ankara between Turkish Energy Minister Alparslan Bayraktar and Shell Chief Executive Wael Sawan, includes an option for the gas to be delivered to European terminals outside Turkey. This arrangement aligns with Turkey's broader strategy to become a regional hub for natural gas and to increase its role in international energy trading.

This latest deal follows a previous agreement between Botas and ExxonMobil in May, under which Botas will purchase up to 2.5 million tons of LNG per year from the U.S. Turkey, which imports almost all of its gas, consumed 50.5 billion cubic meters last year, with LNG accounting for 28.3% of this consumption.