Turkey’s Botas and Algeria’s Sonatrach extend LNG supply deal

Turkey’s state-owned natural gas and LNG firm, Botas, and Algeria’s LNG producer, Sonatrach, have extended their liquefied natural gas supply deal for three more years.

According to a statement issued by the Turkish energy ministry on Tuesday, Botas will continue to buy 4.4 billion cubic meters (bcm) LNG per year, or about 3.2 mtpa, from Botas for three more years until 2027.

Sonatrach and Botas first signed a supply deal back in 1988, and it has been extended since then, the statement said.

The ministry said that the existing contract expires in October 2024.

Algeria became the world’s first LNG producer in 1964 when Sonatrach’s Arzew facility came online.

According to GIIGNL data, Algeria currently has about 25.3 mtpa LNG export capacity at Arzew and Skikda and mostly supplies LNG to France and Turkey.

Earlier this year, Sonatrach signed a new supply deal with French energy giant TotalEnergies.

On the other hand, Botas operates the Marmara Ereglisi onshore terminal in Turkey, as well as the FSRU-based Dortyol facility and the FSRU-based Saros terminal.

The company signed a deal in January with Oman LNG to buy 1 mtpa for a period of 10 years starting in 2025.

Turkey is increasing its LNG import capacity to boost its energy security and to become an international gas hub.

In April, Bulgaria’s Bulgargaz received the first LNG cargo via Turkey as part of a deal it signed with Botas.

Botas and Bulgargaz signed the deal in January, allowing the latter access to Turkish LNG import terminals and the grid.

The duration of the agreement is 13 years and includes a gas transfer of up to 1.5 billion cubic meters per year.

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