Botas and Total signed a heads of agreement for the delivery of 1.1 million metric tons annually (mtpa) of liquefied natural gas (LNG) from 2027, the French oil major said in a statement.
When added to pipeline imports and earlier LNG deals with Oman, ExxonMobil and Shell, the volumes give Turkey 25 billion cubic meters (bcm) of surplus gas above the country's annual consumption of 50 bcm, Turkish Energy Minister Alparslan Bayraktar said.
"We can supply to European markets, particularly to the ones in south-east Europe that are in need of gas," said Bayraktar, who was in Houston to sign the deal on the sidelines of the GasTech conference.
The surplus also gives Turkey flexibility to negotiate better terms or reduce gas dependence on Russia and Iran, as contracts with Gazprom Export and the National Iranian Gas Company expire in 2025 and 2026.
"Turkey has two goals in its gas import drive: one, to lower the import volumes from Russia and Iran. Second, Turkey hopes to position itself as a gas supply hub ... since European buyers have not signed sufficient long-term gas contracts," said Professor Brenda Shaffer, an energy expert at the US Naval Postgraduate School.
For Total, the deal cements a longer-term relationship with Botas after a first LNG contract to supply 1.2 mtpa from 2020 to 2023.
"This agreement enables us to secure long-term sales and reduce our exposure to spot market gas price fluctuations," said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
It also furthers Total's strategy to build integrated gas and power businesses in growth markets.
Turkey has had the largest demand growth of all OECD countries from 2000 to 2020, with primary energy consumption nearly doubling and power demand increasing 165%, according to the International Energy Agency.
Last year TotalEnergies bought a 50% stake in Ronesans Enerji — owned by Turkish tycoon Erman Ilicak — which holds 166MW of hydroelectric assets and a pipeline of future wind, solar and battery projects.
The French oil major is the world's third-largest LNG player, with a roughly 12% market share and a current global portfolio of about 50 million tons per year.
