Türkiye Secures 20-Year LNG Deal with Mercuria

Türkiye has taken a significant step in strengthening its long-term energy security with a new agreement between its state-owned gas company BOTAŞ and the global energy giant Mercuria. The deal, covering a 20-year LNG supply program, was announced by Energy and Natural Resources Minister Alparslan Bayraktar.

The signing comes as Ankara aims to diversify its energy portfolio, stabilize prices, and increase Türkiye’s role in global LNG trade, positioning itself as a strategic energy hub between Europe, the Middle East, and North Africa.

Details of the Mercuria Agreement

In his social media statement, Minister Bayraktar described the deal as a milestone in Türkiye’s energy diplomacy:

“We have taken another important step in natural gas trade, one of the key topics to be discussed at the upcoming White House meeting between President Recep Tayyip Erdoğan and U.S. President Donald Trump. Our national company BOTAŞ has signed a long-term LNG supply agreement with Mercuria, one of the world’s leading energy groups, in New York.”

Key elements of the agreement include:

• Duration: 20 years

• Start of Deliveries: 2026

• Annual Supply: ~4 billion cubic meters (bcm) of natural gas equivalent LNG

• Total Volume: ~70 bcm over the contract term

• Supply Sources: LNG to be delivered both from U.S. loading terminals and from regasification plants in Türkiye, Europe, and North Africa

According to Bayraktar, the agreement not only strengthens BOTAŞ’s global LNG trading position but also aligns with Türkiye’s vision of energy supply security, price stability, and resource diversification.

Second Agreement with Woodside Energy

Alongside the Mercuria deal, Bayraktar also revealed that BOTAŞ signed another LNG supply agreement with Woodside Energy, one of the world’s largest independent natural gas producers.

While details of the Woodside contract have not yet been disclosed, the move reflects Türkiye’s strategy of securing multiple long-term suppliers to balance risks and enhance market competitiveness.

Energy Security and Strategic Positioning

Türkiye’s energy strategy has been increasingly focused on:

• Diversification of sources: Reducing dependence on pipeline imports from limited partners by expanding LNG capacity.

• Long-term price stability: Shielding consumers and industries from sharp fluctuations in global spot markets.

• Regional energy hub ambitions: Leveraging its geography to become a critical LNG and natural gas corridor for Europe and North Africa.

These new LNG contracts are expected to enhance Türkiye’s bargaining power and help stabilize domestic energy markets.

Global and Diplomatic Context

The announcement comes just days before a scheduled meeting between President Erdoğan and President Trump in Washington, where energy cooperation is expected to be a central topic.

By locking in long-term LNG supplies from U.S.-linked companies, Türkiye is signaling a strategic pivot toward closer transatlantic energy ties — a move that may also reduce exposure to geopolitical risks tied to pipeline imports from Russia, Iran, and other regional suppliers.

Looking Ahead

With deliveries starting in 2026, Türkiye is set to secure 70 bcm of natural gas equivalent LNG over the next two decades. The agreements with Mercuria and Woodside place BOTAŞ among the active players in global LNG trading, and reinforce Türkiye’s goal of becoming a reliable energy hub for its neighbors and allies.

Bayraktar concluded his announcement by framing the deal as a long-term win:

“This agreement will not only increase BOTAŞ’s effectiveness in global LNG trade, but it also supports our country’s vision of long-term supply security, price stability, and diversification of resources. We wish this agreement to be beneficial for our nation and all stakeholders.”