Türkiye to sign 10-year LNG deal with Total Energies, starting in 2027
Workers of French oil giant TotalEnergies walk past an gasoline tank of the former oil refinery in Mardyck near Dunkerque, France, October 4, 2022. (Reuters/Pascal Rossignol)
Türkiye is set to sign a long-term liquefied natural gas (LNG) agreement with Total Energies next week, sources told news website Middle East Eye. The 10-year agreement, beginning in 2027, aims to strengthen Türkiye’s energy security and complement similar LNG deals signed with other major energy companies this year.
| Production | Imports | Domestic sales (Consumption) | Exports | Total supply (Production + imports) | Total demand (Domestic sales + exports) |
| 807.28 | 50,483,77 | 50,210.84 | 896.28 | 51,291.05 | 51,107.12 |
While the exact amount of LNG to be supplied was not disclosed, sources familiar with the negotiations said the deal with Total Energies would provide less gas than a recently signed deal with Shell, which will supply Türkiye with four billion cubic meters of LNG annually, starting in 2027.
The agreement with Total Energies is part of a series of deals led by Turkish Energy Minister Alparslan Bayraktar to diversify Türkiye’s energy resources and secure favorable terms in future contract renewals.
Series of LNG deals of Türkiye to bolster energy security
Earlier this year, Türkiye signed a decade-long deal with Exxon Mobil to supply 2.5 million tonnes of LNG annually, starting in 2027. The set of agreements with Total Energies, Exxon Mobil, and Shell is designed to give Türkiye leverage in upcoming gas contract negotiations, which will intensify next year.
Türkiye’s current long-term gas supply agreements with Russia, through the Blue Stream pipeline, are set to expire in 2025, and its contracts with Iran will end in 2026. Additionally, Türkiye’s LNG deal with Algeria will conclude in 2027, although Türkiye will continue to import 4.4 billion cubic meters of LNG annually from Algeria until then.
“The gas prices in the next decade are expected to drop significantly, and we are looking to diversify our resources for the future to secure the best prices for Turkish households,” one source told MEE.
Türkiye is one of the world’s top energy consumers and Egypt is one of the key suppliers of LNG to the Turkish market. In February 2024, following the visit of Türkiye’s President Recep Tayyip Erdogan to Cairo, a meeting was held between the senior management of national natural gas companies BOTAS and Egyptian Natural Gas Holding Company (EGAS).
| 2016 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| EGYPT | 99 (Share: 0.21) | 202 (Share: 0.4) | 468 (Share: 1.03) | 92 (Share: 0.19) | 1.351 (Share: 2.3) | 2231 (Share: 4.08) | 1319 (Share: 2.61) |
Türkiye’s gas hub ambitions and resale opportunities
Türkiye has been working to establish a gas hub in the western part of the country, aiming to create a Turkish blend of gas from various resources to set competitive prices. Some of the recently signed LNG agreements include clauses allowing Türkiye to resell surplus gas to third countries.
For example, Türkiye could resell gas acquired from Shell to buyers in the Balkans or other regions if domestic demand is met.
