This story requires a subscription
This includes a single user license.
Türkiye’s Energy Minister Alparslan Bayraktar announced the deal during a ceremony held in Ankara on Monday.
Under the 10-year deal, Botas will receive 40 LNG cargoes per year, or up to 4 billion cubic meters of LNG, Bayraktar said.
The agreement includes an option for Botas to receive the shipments at European terminals, outside Türkiye.
The supplies will start in 2027.
Botas said in a separate statement the deal will enable the company to expand its LNG capacity and use its terminal and pipeline infrastructure to assist Türkiye to diversify its gas resources and become a major regional gas hub.
The agreement was signed by Abdulvahit Fidan, Botas chairman and general manager, and Tom Summers, senior VP of Shell LNG Marketing and Trading. Shell CEO Wael Sawan was also present at the ceremony.
US and other volumes
Shell said in a statement later on Monday the LNG supplies will come from its US and global portfolio.
The company plans to grow its LNG business by 20-30 percent by 2030, compared with 2022,
Shell is operator or shareholder in a diverse portfolio of LNG plants located around the world.
The company sold 33.28 million tonnes of LNG during the first half of this year, a rise of 1 percent compared to 33 million tonnes in 2023.
During the January-June period, Shell’s liquefaction volumes rose 1 percent to 14.53 million tonnes.
Botas LNG deals
Botas has been very active lately in signing supply deals, while the firm also agreed to buy one FSRU.
In May, Botas signed a deal with US energy giant ExxonMobil to buy LNG from the latter.
Under the agreement, Türkiye plans to receive up to 2.5 million tons of LNG per year for 10 years, Botas said.
In April, Botas also signed a 10-year SPA with state-owned producer Oman LNG.
Under the deal, Oman LNG will supply Botas with 1 mtpa of LNG, starting in 2025.
Prior to this, Botas and Algeria’s LNG producer, Sonatrach, extended their LNG supply deal for three more years.
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.
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 recently agreed to buy the 2020-built 180,000-cbm FSRU, Vasant 1, which serves the Saros terminal, for $399 million.
There is also one other FSRU operating in Türkiye at the privately-owned Etki terminal in Aliaga, Izmir, while Egegaz operates the Izmir Aliaga LNG facility.
Türkiye increased its LNG import capacity to boost its energy security and to become an international gas hub.
In April last year, Bulgaria’s Bulgargaz received the first LNG cargo via Türkiye from the US 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.