Türkiye extends Russia gas deal, eyes US production investment

Minister of Energy and Natural Resources Alparslan Bayraktar announced that Türkiye has extended its natural gas contracts with Russia, which are set to expire at the end of 2025, for one year with a volume of 22 billion cubic meters. Bayraktar also stated that Türkiye is exploring the possibility of investing in natural gas production in the US.

According to Reuters, Türkiye, one of the last major buyers of Russian natural gas in Europe, has also signed a series of long-term agreements for liquefied natural gas (LNG), taking into account the expected supply surplus in the global market. A significant portion of these new purchases is planned to come from the US.

Agreement with Russia will be valid for another year

Minister Bayraktar reported that the state-owned company BOTAŞ has formalized the contract extension with Russia.

“Shipments from Gazprom will continue next year, but we are focusing on a shorter term, about one year,” Bayraktar said.

Negotiations with Iran are ongoing

Meanwhile, Türkiye is continuing negotiations for its natural gas import agreement with Iran, which covers an annual volume of 10 billion cubic meters and expires in July 2026. The energy minister stated that increasing the volume of Turkmen natural gas purchases via Iran is also one of the options on the table.

LNG risk to be managed with production investment in the US

Minister Bayraktar also announced that Türkiye plans to invest in US production to hedge against financial risks associated with the up to 1,500 cargoes of liquefied natural gas it is obligated to purchase from the US over the next 15 years.

“We are considering investing in the upstream segments of the production chain in the American market to secure our position and create a complete value chain,” Bayraktar said.

In this context, the state-owned oil company, the Turkish Petroleum Corporation (TPAO), is continuing talks with companies that include American energy giants such as Chevron and Exxon. Bayraktar added that an agreement could be signed in January.