Türkiye’s BOTAS, Shell ink long-term LNG deal

Türkiye’s state energy company BOTAS and British oil major Shell on Monday signed a long-term LNG supply contract.

Under the deal, Shell will supply BOTAS with up to 4 billion cubic meters of liquefied natural gas (LNG) a year from its US and global portfolio, with deliveries starting in 2027, the Turkish energy company said in a statement , News.Az reports.

The agreement was signed by Abdulvahit FİDAN, BOTAS Chairman and General Manager, and Tom Summers, Senior Vice President of Shell LNG Marketing and Trading, during a ceremony under the auspices of Alparslan Bayraktar, Turkish Minister of Energy and Natural Resources, and with the participation of Shell CEO Wael SAWAN.

The deal will enable BOTAS to expand its LNG access and use its extensive terminal and pipeline infrastructure to help Türkiye to diversify its gas resources and become a major regional gas hub.

Minister Bayraktar said: “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. In this context, we have strengthened our infrastructure with international pipelines, LNG terminals and underground storage projects.

The LNG supply agreement signed with Shell today will increase the diversity and flexibility of our portfolio. We are also pleased that BOTAS 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.

Such agreements make significant contributions to the supply security of not only our country but also the region.”

As a leading LNG supplier, Shell plans to grow its LNG business by 20-30% by 2030, compared with 2022, strongly positioning the company to deliver value as we move towards becoming a net-zero emissions energy business by 2050.

News.Az