According to Reuters, Turkey is currently in discussions with US energy giant ExxonMobil regarding a potential deal to procure liquefied natural gas (LNG), as reported by the Financial Times.
Alparslan Bayraktar, Turkey’s Energy Minister, revealed in an interview with FT that the country is actively pursuing measures to diversify its energy sources. This strategic move aims to establish a more balanced energy supply portfolio, thereby reducing reliance on any single partner, particularly amid concerns over Russian energy dependence.
Bayraktar disclosed that Turkey is exploring the possibility of entering into a long-term agreement with ExxonMobil, with potential annual LNG purchases of up to 2.5 million tons. Although the proposed duration of the agreement could span over a decade, specific commercial terms are still under discussion.
The timing of these discussions aligns with a decrease in Russian exports to Europe, prompting European nations to increase their LNG procurement from various global suppliers. This shift aims to reduce reliance on Russian pipeline gas, especially amidst the ongoing conflict in Ukraine. Data from LSEG indicates a 1.9 percent decline in Russian LNG exports to Europe in 2023, totaling 15.8 million metric tons.
Turkey, which lacks significant domestic oil and gas resources, heavily relies on imports from various countries, including Russia, Azerbaijan, and Iran, as well as LNG shipments from Algeria, Qatar, the United States, and Nigeria.
