Turkish petroleum pipeline corporation BOTAS signed a liquified natural gas (LNG) supply agreement with state-owned Oman LNG on 30 January.
Under the agreement, Oman will supply Turkey with one million tonnes (mt) of LNG annually by 2025. Botas’ statement said that the deal would aim to increase energy security and diversify Turkey’s supply sources.
Go deeper with GlobalData
Turkey’s Energy and Natural Resources Minister Fatih Donmez said the country could extend the deal if needed.
Until the Russian invasion of Ukraine, Turkey heavily depended on Russia for its gas. Since then, many pipelines have stopped supplying, citing Western sanctions. Turkey relies on natural gas as its main source of energy for electricity generation. At the same time, 80% of the country’s population depends on gas domestically. The country experiences peak demand during the summer, when the use of air-conditioners rises. This has pushed the country to look for alternative sources before then.
Hamed Al Naamany, chief executive of Oman LNG, said that its term-sheet agreement with Turkey could help develop the company’s position in the global energy market. Towards the end of December, the company signed binding agreements with three Japanese firms for LNG supply from 2025. Oman LNG will supply a total volume of 2.35 mt annually, varying from five to ten years in contract length.
In January, the company signed deals with Thailand’s PTT Global LNG and French energy firm TotalEnergies, for a total volume of 1.6mt annually from 2025. Oman LNG also signed a deal with Shell International Trading Middle East for an offtake of 0.8mt annually for ten years from 2025.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
