On Monday, Turkey signed a ten-year agreement with Shell under which the supermajor will supply Turkish state energy firm BOTAS with LNG for ten years starting in 2027, in a boost to Turkey's plans to become a regional gas hub for Europe and the Mediterranean.
The agreement envisages Shell supplying up to 4 billion cubic meters of liquefied natural gas per year to BOTAS from its U.S. and global portfolio, the Turkish company said on Monday.
The agreement will enable BOTAS to expand its LNG access and use its terminal and pipeline infrastructure to help Turkey diversify its natural gas supply and become a major regional gas hub, the Turkish firm noted.
Russia is currently Turkey's top natural gas supplier, followed by Azerbaijan, Algeria, Iran, and the United States.
Turkey imports all the natural gas it needs via pipelines and LNG import facilities. The country is also betting on recent gas discoveries in the Black Sea to slash its gas imports and diversify its energy sources. Turkey has big plans to become a hub for natural gas supply and trading.
"Our goal in natural gas, 99% of which we imported until the discovery of Black Sea Gas, is to diversify the supply side and offer natural gas to our citizens and industry in a more competitive and affordable rate," Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, said.
"We are also pleased that BOTA? will 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," the minister added.
"Such agreements make significant contributions to the supply security of not only our country but also the region," the official said.
As part of its efforts to diversify gas supply, BOTAS signed in May this year an agreement with ExxonMobil, under which the U.S. supermajor will deliver up to 2.5 million tons of LNG every year for 10 years.
By Charles Kennedy for Oilprice.com
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