How Will Türkiye’s Decade-Long Gas Deal With Shell Advance Its Energy Hub Goals?

Türkiye's strategic location between Europe and Asia has also coincidentally put it adjacent to 60% of the world's proven oil and natural gas reserves. While the country still has an energy import dependency, it also aims to become a major energy hub, transporting Asia's gas and oil to markets in Europe. And a recent natural gas deal could help bring those ambitions closer.

The Turkish state energy company BOTAS and British oil giant Shell have signed a 10-year liquefied natural gas agreement. Türkiye's Energy and Natural Resources Minister Alparslan Bayraktar said around four billion cubic metres will be delivered annually starting from 2027. Bayraktar also said the deal will provide the option of receiving LNG from the filling port and unloading it to European terminals. Earlier this year, Turkiye had also inked an LNG agreement with the US's largest oil company, ExxonMobil. Ankara has made significant investments in LNG facilities and natural gas pipelines over the past ten years.

Guests:
Thomas O’Donnell
Global Fellow at Wilson Center

Tomas Marzec-Manser
Head of Gas Analytics at ICIS