Botaş signs long-term LNG supply deal with Shell

ANKARA

Turkish state energy company Botaş has signed a 10-year LNG supply agreement with Shell, with deliveries set to begin in 2027.

“Under this agreement, approximately 4 billion cubic meters of LNG will be delivered annually, totaling 40 billion cubic meters over the contract period,” Energy Minister Alparslan Bayraktar said.

The agreement also provides additional regional and global trade opportunities with options such as loading from the supply port and unloading at European terminals, said the minister, who met with Shell CEO Wael Sawan in Ankara.

Meanwhile, President Recep Tayyip Erdoğan also held talks with Sawan. The closed-door meeting at the presidential palace was held after the Botaş-Shell deal was inked.

Türkiye is now able to purchase half of the annual natural gas it needs through LNG ships, Bayraktar said, adding that studies are being carried out with both neighboring countries and international companies to create a balanced supply portfolio.

Pipeline gas and LNG supply agreements with Azerbaijan and Algeria have been renewed and Türkiye is currently trading natural gas with 34 countries, the minister added.

Thanks to investments in the infrastructure in recent years, Türkiye is now in a position to easily provide 70-80 billion cubic meters of natural gas supply annually, said Bayraktar, noting that with its annual consumption of 50 billion cubic meters, Türkiye has the fourth largest natural gas market in Europe.

The agreement will enable Botaş to expand its LNG access and use its extensive terminal and pipeline infrastructure to help Türkiye diversify its gas resources and become a major regional gas hub, the Turkish energy company said in a statement.