Turkey Extends Gas Supply Contracts with Gazprom Amid LNG Shift

Turkey has extended its contracts with Russian energy giant Gazprom, securing the supply of 22 billion cubic meters of natural gas until the end of 2026, as confirmed by Turkey’s Energy Minister, Alparslan Bayraktar. This decision comes at a time when Turkey is actively working to decrease its reliance on Russian gas, which now accounts for less than 40% of its total gas consumption.

Despite this ongoing reduction, Ankara is laying the groundwork for a more diverse energy portfolio. The Turkish government is exploring investments in U.S. natural gas to expand its supply sources. Recently, Turkey has signed several long-term contracts for liquefied natural gas (LNG), predominantly from the United States. Bayraktar indicated that the government aims to purchase 1,500 cargoes of U.S. LNG over the next 15 years, with plans to invest in LNG exporting facilities.

Investments in U.S. LNG and Infrastructure Expansion

To enhance its position in the global gas market, Turkey is negotiating with major U.S. LNG producers, including Chevron. Currently, the United States ranks as Turkey’s fourth-largest gas supplier, delivering 5.5 billion cubic meters this year, which represents a 14% market share.

In alignment with its ambition to become a regional gas hub, Turkey is also increasing its LNG import capacity. Plans are underway to install two additional floating regasification units at Turkish ports in the coming years. This addition will complement Turkey’s existing infrastructure of three floating terminals and two onshore facilities, which collectively have a capacity to regasify 50 billion cubic meters annually.

Future Collaborations and Regional Supply Deals

Turkey is also in discussions to extend its gas supply agreement with Iran, which is set to expire in July 2026. This deal encompasses the delivery of 10 billion cubic meters of gas from both Iran and Turkmenistan. Bayraktar expressed interest in increasing the volume of Turkmen gas entering Turkey through a swap deal with Iran. Earlier this year, Turkey secured an agreement for the transit of 1.3 billion cubic meters of Turkmen gas via Iran.

As Turkey navigates its energy strategy, the balancing act between maintaining traditional supply sources and diversifying its imports illustrates the complex dynamics of the global gas market. The ongoing investments and contracts signal Turkey’s commitment to enhancing its energy security while adapting to changing geopolitical landscapes.