Türkiye signs series of LNG deals, deepens co-op with Oman, China

Türkiye has signed a series of deals with international energy companies to secure approximately 15 billion cubic meters (bcm) of liquefied natural gas (LNG) over the next three years, part of its strategy to guarantee winter supply security and diversify sources, Energy and Natural Resources Minister Bayraktar said on Wednesday.

The purchase agreements were announced over two days during the Gastech energy conference in Milan, where Türkiye’s state energy company BOTAŞ signed contracts with eight suppliers. In addition to LNG deals, cooperation accords were also signed with various countries and companies.

Initial agreements with BP, Eni and Shell covered 8.7 bcm, while five additional deals signed on Wednesday expanded the portfolio to include deliveries from companies based in Britain, the U.S., Germany, Japan and Norway.

Among the suppliers, U.K.-based Hartree will deliver 600 million cubic meters over two years. U.S. LNG producer Cheniere will supply 1.2 bcm within a year, while Germany’s SEFE agreed to provide 1.8 bcm over three years, Bayraktar said.

Separately, Japan’s JERA will deliver 600 million cubic metres under a one-year contract and Norway’s Equinor will supply 1.5 bcm over three years, he also said.

Türkiye imported around 50 bcm of natural gas last year, including 14.3 bcm in the form of LNG. The newly signed contracts represent a significant portion of domestic consumption and are expected to strengthen supply security ahead of the winter season.

Bayraktar said the agreements reflect Türkiye’s strategy to build a flexible, multi-sourced and secure energy structure, adding that the deals will enhance predictability in the country’s medium-term gas portfolio.

The minister met with Eni CEO Claudio Descalzi and Cederic Cremers, Shell’s president of integrated gas. With Cremers, he discussed natural gas supply strategy, possible cooperation on exploration and production in the Black Sea and joint energy initiatives in third countries.

Cooperation agreements

Alongside LNG contracts, BOTAŞ signed several cooperation deals.

With China’s state-owned PetroChina, the company agreed to collaborate on LNG trading, transportation management and and exploring joint ventures in new markets.

BOTAŞ also inked a new deal with Oman, from where Türkiye already imports LNG.

The agreement covers cooperation on expanding Oman’s LNG production capacity, use of floating storage and regasification units (FSRUs), LNG carrier collaboration and exploring additional LNG supply options, Bayraktar said.

Contracts for Black Sea gas

Meanwhile, the state energy company Turkish Petroleum Corporation’s (TPAO) offshore subsidiary TP-OTC signed an agreement with Baker Hughes regarding the works on the third phase of the development project at Türkiye’s largest natural gas field in the Black Sea.

The deal covers the supply of subsea production systems and well completion equipment. Bayraktar said he discussed a new partnership with Baker Hughes CEO Lorenzo Simonelli.

Separately, TP-OTC awarded Italian engineering group Saipem a $1.5 billion contract to continue the development of the Sakarya Gas Field.

The deal covers the construction of a 183-kilometer subsea main production pipeline to transport Sakarya gas to an onshore facility on the mainland.

Discovered between 2020 and 2022, the Sakarya field is estimated to hold 710 billion cubic meters of gas and is expected to meet around 30% of the country’s annual consumption once full production capacity is reached.

In May, Türkiye announced the discovery of an additional 75 bcm of gas in the Black Sea.

Saipem had already been involved in Sakarya’s first and second phases of development. The new contract will last up to three years, with the offshore work taking place in 2027, the company said.

The first phase has seen the daily output reach 9.5 million cubic meters, enough to supply roughly 4 million households.

The second phase aims to double production to 20 mcm per day, supported by a floating production, storage and offloading (FPSO) platform acquired in 2023 and slated to become operational next year.

Phase three aims to ramp up daily production to 40 million cubic meters by 2028.

In Milan, Bayraktar also held talks with Libya’s Oil and Gas Minister Khalifa Abdulsadek to review the status of existing cooperation, focusing on hydrocarbon exploration and production.

Bayraktar said they want to broaden cooperation with Libya through new projects and investments.

Earlier on Tuesday, the minister met with Hungary’s Minister of Foreign Affairs and Trade Peter Szijjarto.

With the agreements signed in recent years, Türkiye and Hungary “aim to carry out joint projects in key areas such as hydrocarbon exploration and production, natural gas trade and nuclear cooperation,” Bayraktar said.

“We reviewed the progress of these projects with Szijjarto and focused on efforts to further strengthen our energy partnership,” he added.

Argent LNG signs gas deal with EPIAŞ

Meanwhile, U.S.-based energy firm Argent LNG has signed a 5 million metric tons per annum (mtpa) gas supply deal with Turkish energy bourse EPIAŞ, in a move billed as aimed at moving U.S. gas into Europe and potentially Syria.

Argent LNG, which is developing an LNG export facility in Louisiana, in January signed a non-binding agreement to supply Bangladesh up to 5 million metric tons of the fuel annually, the first major U.S. LNG supply deal since U.S. President Donald Trump began his second term.

“The company has committed an initial 5 mtpa to supply Southeast and Central Europe under this new partnership, reinforcing both economic and energy security for its partners,” the press release said.

“This is a big geopolitical move to get material into the market as a backup supply to EU countries,” said Jonathan Bass, Argent LNG’s CEO.

“We are forward positioning American LNG into the Eastern European market to supply and provide energy security and flatten the curve of shortages.”

He said the gas could also be supplied via Türkiye to neighboring Syria, bypassing a potentially complicated direct deal with Damascus, where U.S. sanctions are being lifted after the ouster of longtime Syrian dictator Bashar Assad, but barriers to trade remain in place.

Türkiye has ambitions to become a regional energy trading hub and is trying to position itself as a conduit for supplies to southeastern Europe.

Ankara is also extending its energy cooperation with the United States. Last year, it signed a 10-year LNG supply deal with ExxonMobil and a shale oil prospecting deal with Continental Resources.

A major gas market, Türkiye complements its pipeline imports with LNG. Russia is the largest pipeline gas supplier, and LNG makes up to a third of the 50 bcm annual gas imports.

The U.S. is the largest LNG supplier.

Türkiye has an extensive LNG import infrastructure, with BOTAŞ operating three terminals.

Ankara is also positioning itself to be a major player in post-Assad reconstruction, and began supplying 1.2 bcm of Azerbaijani gas to Syria last month.