Turkey Expands LNG Imports with 20-Year Mercuria Agreement

Turkey’s state gas company, Botas, has secured a significant 20-year liquefied natural gas (LNG) import agreement with Swiss trading firm Mercuria Energy Group Ltd.. Beginning in 2026, this deal will enable Botas to import approximately 4 billion cubic meters of LNG annually, primarily sourced from the United States. The agreement not only strengthens Turkey’s energy portfolio but also positions the country as a key player in the European and North African gas markets, as confirmed by Energy Minister Alparslan Bayraktar.

The volume of gas under this new contract represents about 8% of Turkey’s total annual gas demand. However, the strategic significance of this agreement lies in its potential to support Botas’s international trading aspirations, particularly with North African markets. Currently, Egypt stands as the only active LNG importer in the region, and Turkey has recently collaborated with Egypt to establish a temporary import terminal.

In addition to the Mercuria deal, Botas has also initiated a preliminary agreement with Woodside Energy Group Ltd. from Australia. This arrangement will facilitate the import of an additional 5.8 billion cubic meters of LNG over nine years, starting in 2030, from the Louisiana LNG export project in the United States. These contracts come on the heels of a series of agreements Turkey signed at the recent Gastech conference, reflecting the country’s commitment to diversifying its LNG sources away from traditional pipeline suppliers such as Russia and Iran.

As Turkey navigates a changing energy landscape, Botas is among several energy companies bolstering their LNG portfolios ahead of a predicted global supply glut anticipated to begin next year. This proactive approach to securing gas supplies aligns with Turkey’s broader energy strategy and its aim to enhance energy security.

The shift in Turkey’s energy procurement strategy will also be a topic of discussion between Turkish President Recep Tayyip Erdogan and United States President Donald Trump, who are scheduled to meet at the White House on Thursday. The dialogue is expected to focus on gas trade, reflecting the growing interdependence of energy markets and international relations.

The recent agreements signify a robust step forward in Turkey’s ambitions to become a regional energy hub while ensuring a steady supply of LNG to meet domestic and international demand. As the global energy market evolves, Turkey’s strategic partnerships may play a crucial role in shaping the future of LNG trade in the region.