Turkey is engaged in talks with US energy giant ExxonMobil to secure a multibillion-dollar long-term deal for the purchase of liquefied natural gas (LNG). This move is part of Turkey's broader strategy to reduce its dependence on Russian energy imports.
"We are building a new supply portfolio to ensure we're not overly reliant on any one partner," explained Turkey's Energy Minister, Alparslan Bayraktar, in an interview with the Financial Times.
Strengthening Ties and Diversifying Supplies
The potential deal comes as Turkey and the US work to mend diplomatic relations. Ankara recently lifted its objections to Sweden's NATO membership bid, and Washington subsequently approved the sale of F-16 fighter jets to Turkey. Additionally, Turkey aims to establish itself as a regional energy hub.
Under the proposed agreement, Turkey could receive up to 2.5 million tonnes of LNG per year from ExxonMobil over a potential ten-year period. The commercial aspects of the deal remain under negotiation. Based on current pricing, this volume of LNG would cost Turkey an estimated $1.1 billion.
Ambitious LNG Expansion
ExxonMobil has aggressive plans to double its LNG portfolio by 2030. The company holds a significant stake in the new Golden Pass LNG export terminal on the US Gulf coast and is involved in LNG projects in Papua New Guinea and Mozambique.
The Search for Alternatives
Ankara has approached other US natural gas producers seeking LNG deals as it looks to diversify its energy portfolio before long-term agreements with Russia and Iran expire in the coming years. Russia remains Turkey's primary natural gas supplier. At present, Turkey holds long-term LNG supply deals with Algeria and Oman.
