Turkey in Talks with ExxonMobil for Multi-Billion Dollar LNG Deal
Turkey is currently in talks with ExxonMobil regarding a multi-billion dollar deal to purchase liquefied natural gas (LNG) in order to reduce its dependency on Russian energy sources. The Turkish Energy Minister Alparslan Bayraktar announced this in an interview with the Financial Times, as reported by RBC-Ukraine.
The Turkish side aims to create a «new supply portfolio» that will decrease its reliance on any particular partner. According to Bayraktar, within the framework of a long-term agreement being discussed with Exxon, Turkey could receive up to 2.5 million tons of LNG per year.
He added that the contract could be signed for a period of ten years, however the commercial terms of the agreement with Exxon are still being negotiated.
Currently, around 40% of Turkey’s LNG consumption comes from Russia. Turkey also receives the largest share of its oil from Moscow. The Turkish economy heavily depends on imports from Russia, Azerbaijan, Iran, as well as LNG from Algeria, Qatar, the USA, and Nigeria, as it is lacking in oil and gas resources.
The agreement between Turkey and Exxon becomes relevant in the context of decreasing Russian export volumes to Europe. Europe is increasing its purchase of LNG from global producers to reduce its import of Russian pipeline gas following the Kremlin’s invasion of Ukraine.
