This story requires a subscription
This includes a single user license.
Türkiye’s Energy Minister Alparslan Bayraktar announced the deal on Wednesday.
The two firms signed the agreement during the Gastech event in Houston, Texas.
According to Bayraktar, the deal is for 10 years and will start in 2017.
Under the contract, Botas will receive 16 LNG cargoes or up to 1.6 billion cubic meters per year from TotalEnergies.
Botas said in a statement the LNG supply agreement will increase portfolio diversity and flexibility, and the company will gain new competencies in the field of LNG transportation as it will receive LNG from the loading port by ships.
TotalEnergies said in a separate statement that the two firms signed a heads of agreement for the delivery of 1.1 million tons of LNG per year.
Also, this agreement allows TotalEnergies to strengthen its long-term presence in the Turkish LNG market.
“We are pleased to initiate a new long-term collaboration with Botas, a key partner for the company in Türkiye,” said Gregory Joffroy, senior VP, LNG at TotalEnergies.
“This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations,” he said.
Botas recently also signed a sales and purchase agreement with UK-based LNG giant Shell.
Under this 10-year deal, Botas will receive 40 LNG cargoes per year, or up to 4 billion cubic meters of LNG.
The agreement includes an option for Botas to receive the shipments at European terminals, outside Türkiye.
Shell’s LNG supplies will come from its US and global portfolio. The supplies will start in 2027.
Botas said 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.
Botas boosting LNG business
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, and in April it also signed a 10-year SPA with state-owned producer Oman LNG.
Before this, Botas and Algeria’s LNG producer, Sonatrach, extended their LNG supply deal for three more years.
Botas operates the Marmara Ereglisi onshore terminal in Turkey, 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.