Turkey in negotiations with ExxonMobil for a lucrative LNG agreement worth billions

Turkey is making moves to diversify its energy sources by engaging in talks with US energy giant ExxonMobil for a multibillion-dollar deal to purchase liquefied natural gas (LNG). This deal comes as Ankara aims to reduce its reliance on Russian energy, a significant supplier of natural gas to the country.

According to Turkish energy minister Alparslan Bayraktar, the country is looking to establish a “new supply portfolio” that will decrease its dependence on any single energy partner. The potential deal with Exxon would secure up to 2.5 million tonnes of LNG annually for Turkey, a move that could cover about 7% of the country’s natural gas consumption.

Exxon, with plans to expand its LNG portfolio to 40 million tonnes per year by 2030, is in discussions with the Turkish government regarding potential LNG opportunities. The company’s involvement in projects such as the Golden Pass LNG export terminal in the US Gulf coast underscores its commitment to the LNG market.

Turkey’s efforts to diversify its natural gas supplies come as it prepares for the expiration of long-term contracts with Russia and Iran in the mid-2020s. The country, heavily reliant on natural gas for power generation and industry, is also exploring domestic energy production options to meet its growing needs.

As Turkey navigates its energy landscape, the potential ExxonMobil deal represents a significant step towards achieving energy security and independence. With geopolitical considerations and economic factors at play, Ankara’s strategic energy decisions will shape its future energy landscape.