- Turkey extends Russian gas contracts, diversifies energy with U.S. LNG.
- Plans include new FSRUs, nuclear plants, and gas hub ambitions.
- Negotiations are ongoing with Iran, Turkmenistan for additional natural gas supplies.
Turkey has completed a one-year extension for its two gas import contracts with Russia, totaling 22 bcm, and is exploring investments in U.S. gas production to diversify energy sources, according to Turkey's energy minister.
Turkey, Russia's final significant market for natural gas in Europe, has consistently reduced the proportion of Russian supplies in its gas mixture, which has fallen below 40%. The two agreements with Gazprom are set to conclude at the end of the year.
Ankara has individually executed several agreements to acquire long-term liquefied natural gas (LNG), with a significant portion sourced from the United States, capitalizing on anticipated global LNG surplus in the coming years.
"BOTAS finalised the contract" with Russia's Gazprom, Energy Minister Bayraktar said, referring to the Turkish state gas importer in a press conference. "They will continue to be supplied by Gazprom next year. But we are focusing on more like short term... like one year," he told reporters.
Bayraktar mentioned that Turkey is negotiating a 10 bcm gas import agreement with Iran that ends next July, and noted that some discussions involve raising the amount of Turkmen gas Turkey receives via Iran.
Turkey, a member of NATO, aims to establish itself as a gas trading hub and has been broadening its conventional pipeline supply sources. Bayraktar stated in an uncommon press briefing with international media that it intends to invest in natural gas production facilities in the U.S. to secure its commitment to buy up to 1,500 LNG shipments from the U.S. over the forthcoming 15 years.
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Turkey intends to incorporate two additional FSRUs, or LNG regasification vessels, in the coming years to boost its LNG receiving capacity and may subsequently lease them to Morocco and other nations, according to the minister. The nation presently possesses three FSRUs and two onshore LNG gasification facilities, capable of obtaining over 50 bcm of gas in liquid state.
Turkey anticipates a substantial increase in its electricity usage and intends to construct two additional nuclear facilities to enhance its base-load power generation capabilities. It is presently engaged in distinct discussions with South Korea's KEPCO and Canada's AtkinsRealis for both facilities.
He mentioned that Turkey is also acting as a mediator to facilitate the release of $2 billion in Russian funds that are "held up" with Wall Street bank J.P. Morgan, intended for finishing the Akkuyu nuclear power plant constructed by Russia's Rosatom on Turkey's southern coast.