Turkey's BOTAŞ Secures Landmark 20-Year LNG Deal with Mercuria Energy Group

Historic Agreement Bolsters Turkey's Energy Security

Turkey's state energy company, BOTAŞ, has finalized a landmark 20-year liquefied natural gas (LNG) import agreement with the Swiss-based trading house Mercuria Energy Group Ltd. The deal, announced on September 24, 2025, represents a significant step in Turkey's efforts to diversify its energy supply and strengthen its position in the global energy market. Energy and Natural Resources Minister Alparslan Bayraktar confirmed the agreement, which was signed in New York during President Recep Tayyip Erdoğan's visit to the United Nations General Assembly.

Strategic Diversification and Supply Volume

Under the terms of the agreement, BOTAŞ will receive approximately 4 billion cubic meters (bcm) of LNG annually, commencing in 2026. Over the two-decade period, the total supply is projected to reach around 70 billion cubic meters. The LNG will primarily be sourced from United States loading terminals, with deliveries also facilitated through regasification facilities in Turkey, Europe, and North Africa. This long-term contract is a key component of Turkey's strategy to reduce its reliance on traditional pipeline gas suppliers, such as Russia and Iran, and to secure a more flexible and stable energy portfolio. Last year, Russia accounted for 40% of Turkey's gas imports, while the U.S. contributed 10%.

Economic Impact and Regional Ambitions

The deal is estimated to be worth up to $43 billion over its lifespan, with annual LNG imports valued at approximately $2.15 billion. Minister Bayraktar highlighted that the agreement will 'significantly contribute to the $100 billion trade volume target with the U.S.' and aims to enhance supply security and diversify Turkey's energy sources. Furthermore, the flexibility clauses within the contract allow for the resale of LNG to European and North African markets, underscoring Turkey's ambition to become a pivotal energy trading hub for the European Union.

Broader Context of Energy Deals

This agreement with Mercuria is described as the largest in a series of new contracts recently secured by Turkey. In addition to this deal, BOTAŞ also signed a preliminary nine-year LNG agreement with Australia's Woodside Energy, which will provide 5.8 bcm of LNG starting in 2030. These multiple long-term agreements reflect Turkey's proactive approach to building a robust, multi-sourced, and secure energy structure, ensuring predictability in its medium-term gas supply.