Turkey, Shell Sign 10-Year LNG Supply Deal

Turkey has signed a significant 10-year liquefied natural gas (LNG) supply deal with Shell Plc, aiming to become a regional energy hub for Europe. Starting in 2027, Shell will supply the Turkish state-owned company Botas with about 4 billion cubic meters of LNG annually, which represents 8% of Turkey's total gas demand for 2023. The agreement includes provisions for redirecting shipments to European terminals, enhancing Turkey's role in gas supply security for the EU. This deal follows a prior agreement in May with ExxonMobil for up to 2.5 million tons of LNG per year. Turkey is increasing investments in domestic LNG production, particularly in the Black Sea, which is expected to meet a significant portion of its future gas needs. Overall, these moves reflect Turkey's strategy to bolster its position in the international gas market and diversify its energy sources.