TotalEnergies Sign Deal with Turkiye’s BOTAS for LNG Supplies
Turkiye’s Boru Hatları ile Petrol Taşıma A.Ş. (BOTAŞ) has taken another significant step in line with its long-term supply plans and strategic goals by signing a 10-year agreement with TotalEnergies for the supply of 16 LNG cargoes (approximately 1.6 billion cubic meters) per year, starting from 2027.
The agreement was signed by Abdulvahit FİDAN, Chairman of the Board of Directors and General Manager of BOTAŞ, and Gregory JOFFROY, Senior Vice President of TotalEnergies LNG, in Houston, US on the side lines of the Gastech Conference, which was attended by representatives from the energy sector. Turkiye’s Minister of Energy and Natural Resources Alparslan BAYRAKTAR was present on the occasion.
The LNG supply agreement signed with TotalEnergies will increase portfolio diversity and flexibility, and BOTAŞ will gain new competencies in the field of LNG transportation as it will receive LNG from the loading port by ships.
It will also strengthen BOTAŞ’s position in the global market through the enhanced operational and commercial capabilities. With more agreements to be signed in the upcoming period, BOTAŞ will continue to change the energy landscape of the region as well as Turkiye.
In line with Turkiye’s vision of becoming an energy hub, BOTAŞ has demonstrated its growing presence in the sector through recent infrastructure investments it has made, increased technical capacities it has reached and commercial agreements it has signed.
The TotalEnergies said that the agreement will strengthen its long-term presence in the Turkish LNG market. Natural gas plays a crucial role as a transition energy, addressing the intermittency of renewable energy sources and reducing emissions by replacing coal in electricity generation.
Gregory Joffroy said that they were pleased to initiate a new long-term collaboration with BOTAŞ, a key partner for their company in Turkiye. This agreement enables TotalEnergies to secure long-term sales and reduce our exposure to spot market gas price fluctuations, Joffroy added.
Deal with Shell
It may be recalled BOTAŞ has signed a ten-year agreement with Shell International Trading Middle East Fze (Shell) through which Shell will supply BOTAŞ with up to 4 billion cubic metres of LNG a year from its US and global portfolio, with deliveries starting in 2027.
The deal will enable BOTAŞ to expand its LNG access and use its extensive terminal and pipeline infrastructure to help Türkiye to diversify its gas resources and become a major regional gas hub.
The LNG supply agreement signed with Shell will increase the diversity and flexibility of Turkiye’s portfolio. BOTAŞ will also acquire new capabilities in the field of LNG transport via ships by receiving the LNG at the loading port within the scope of the agreement.
As a leading LNG supplier, Shell plans to grow its LNG business by 20%-30% by 2030, compared with 2022, strongly positioning the company to deliver value as the company moves towards becoming a net-zero emissions energy business by 2050.
