Turkey Boosts Gas Hub Aim With 10-Year TotalEnergies Supply Deal

(Bloomberg) — Turkey signed a 10-year liquefied natural gas supply agreement with France’s TotalEnergies SE with the option to redirect cargoes to Europe and Egypt, the second such deal this month as the country accelerates its bid to become a regional hub for the fuel.

The deal for 1.6 billion cubic meters per year starts in 2027, according to people familiar with the matter, who asked not to be identified because the discussions aren’t public.

Turkey’s state-run gas company Botas has signed a string of new LNG deals this year, diversifying a supply mix that’s historically been dominated by pipeline gas from Azerbaijan, Russia and Iran. That strengthens Ankara’s hand in negotiations to renew long-term supply contracts with both Moscow and Tehran due to expire in 2025 and 2026.

The option for delivery to Europe also adds to Botas’s gas trading portfolio beyond its borders. The deal signed with Shell earlier this month included a similar clause, and last year the firm clinched small export deals with Bulgaria, Romania, Hungary and Moldova.

TotalEnergies didn’t respond to a request for comment.

Turkey wants to leverage its location to become a gas hub on the European Union’s doorstep. It has already invested heavily in new storage and liquefied natural gas facilities as well as exploration and production in the Black Sea.

–With assistance from Selcan Hacaoglu and Patrick Sykes.

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