A 20-year gas deal: Turkey and the US agree on LNG supplies

The contract provides for the supply of liquefied natural gas and strengthening of energy cooperation between the countries

Ankara and Washington agreed on long-term cooperation in the energy sector. Turkey and the US signed an agreement on 20 years, The agreement provides for the supply of US liquefied natural gas (LNG) to Turkish terminals.

Details of the deal

• The contract was signed between Turkish energy companies and leading US LNG producers.

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• Deliveries will begin in 2026 and will last for at least two decades.

• The volume of supplies is estimated at several billion cubic metres per year, which will allow Turkey to reduce its dependence on Russian gas.

• The agreement provides for the possibility of expanding cooperation and increasing supplies in the event of an increase in demand.

Why it matters

Turkey currently imports over 90% of energy resources and has traditionally been dependent on Russian, Azerbaijani and Iranian gas. A long-term agreement with the United States:

• amplifies Ankara's energy security;

• enables us to diversify our supply chain;

• creates the preconditions for the development of LNG terminals and storage facilities.

Reaction of the parties

• Turkish President Recep Tayyip Erdogan called the agreement «historic» and «strengthening the strategic partnership with the United States».

• Representatives of Washington stressed that the contract is in the interests of both countries and strengthens energy stability in the region.

Context.

The signing of the agreement took place against the backdrop of global energy changes, including attempts by Europe and US allies to reduce their dependence on Russian energy resources. Turkey, as a key transit hub, is striving to become a regional energy centre.