Turkey and Shell sign a 10-year liquefied natural gas supply agreement

On September 2, Turkey and Shell held a signing ceremony in Ankara and officially signed a 10-year liquefied natural gas supply agreement. Alparslan Bayraktar, Turkey's minister of energy and natural resources, said that starting from 2027, Shell will sell about 4 billion cubic meters of liquefied natural gas to Turkey's state-owned oil and gas company Botas every year.

It is understood that this supply volume accounts for about 8% of Turkey's total natural gas demand in 2023. The agreement will last for 10 years starting from 2027, with a total supply of about 40 billion cubic meters of liquefied natural gas. Bayraktar also mentioned that the contract also includes the option to transport natural gas to European terminals outside Turkey.

After the signing ceremony, Turkish President Recep Tayyip Erdogan and Shell CEO Wael Sawan held a closed-door meeting. The signing of this agreement is the latest measure for Turkey to strive to become a regional gas hub at Europe's doorstep.

In recent years, Turkey aims to become a gas hub and supplier for the European Union and has made significant investments in excess liquefied natural gas import capacity and domestic production in the Black Sea region. In May this year, Turkey's state-owned energy company reached a 10-year liquefied natural gas supply agreement with US energy giant ExxonMobil, with an annual supply of up to 2.5 million tons.

This cooperation between Shell and Turkey will further strengthen Turkey's position in the energy field, provide more choices and guarantees for Europe's energy supply, and at the same time have a certain impact on the pattern of the global energy market. Its follow-up development is closely watched by all parties.