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Turkey’s Gas Hub Plans Enhanced by 10-Year LNG Agreement with Shell

by Krystal

On Monday, Turkey signed a ten-year deal with Shell for the supply of liquefied natural gas (LNG). Starting in 2027, Shell will provide Turkish state energy firm BOTAS with LNG, supporting Turkey’s goal to become a major regional gas hub for Europe and the Mediterranean.

Under the agreement, Shell will deliver up to 4 billion cubic meters of LNG annually from its U.S. and global sources, according to BOTAS. This deal will allow BOTAS to increase its LNG access and utilize its terminal and pipeline infrastructure. This expansion is part of Turkey’s broader strategy to diversify its natural gas supply and establish itself as a key regional player in gas distribution.

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Currently, Russia is Turkey’s primary natural gas supplier, followed by Azerbaijan, Algeria, Iran, and the United States. Turkey imports all its natural gas through pipelines and LNG terminals. The country is also relying on recent gas discoveries in the Black Sea to reduce its dependency on imports and broaden its energy sources. Turkey’s ambitious plans include becoming a central hub for natural gas supply and trading.

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Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, highlighted the importance of the agreement. He said, “Our goal in natural gas, which we previously imported 99% of until the Black Sea Gas discovery, is to diversify our supply and offer more competitive and affordable rates to our citizens and industries.” He also noted that BOTAS would gain new capabilities in LNG transport by receiving the gas at the loading port under the deal.

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The minister emphasized that such agreements enhance the supply security not only for Turkey but for the entire region.

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In May, as part of its efforts to diversify its gas supply, BOTAS also signed a ten-year deal with ExxonMobil. Under this agreement, ExxonMobil will deliver up to 2.5 million tons of LNG annually.

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