Ankara Expands Contacts with Major American Companies
As Türkiye enters a critical energy transformation phase, it is making strategic investments, signing new contracts, and expanding its liquefied natural gas (LNG) infrastructure. In recent months, Ankara has increased its contacts with major American companies in order to reduce reliance on traditional suppliers and provide a more reliable, flexible supply. The government is negotiating long-term LNG agreements and making infrastructure investments to secure the entire value chain. Meetings with American companies, contract extensions with Russia, and planned terminal investments all indicate that Türkiye seeks not only stability but also a leadership role in the regional energy market.
Reshaping the Strategy
While Türkiye reviews its energy portfolio, it is also considering investing in American oil and gas fields. Energy Minister Alparslan Bayraktar told Bloomberg that Turkish Petroleum (TPAO) is negotiating with Chevron, ExxonMobil, and other large American companies to acquire shares in assets along the production chain. This step is part of Türkiye's strategy to shift its growing LNG presence into the upstream sector. It is anticipated that this month will bring official announcements.
This plan adds a new dimension to deepening energy ties with the US. Ankara now relies heavily on the United States for its long-term gas supply. In addition to securing access to the fuels required to maintain its $1.4 trillion economy and reduce its reliance on Russia and Azerbaijan, this policy is perceived as a component of President Recep Tayyip Erdoğan's plan to broaden his sphere of influence and forge new business ties.
Strengthening LNG Infrastructure
In addition to discussing production assets, Türkiye is taking concrete steps to strengthen its logistics network. BOTAŞ, which manages natural gas transmission infrastructure, is adding two new floating storage and regasification units (FSRU). Thus, the number of such facilities will rise to five. This move aims to meet rising LNG imports and position Türkiye to become a regional energy hub.
Increased Imports
Türkiye has signed agreements with companies such as Mercuria Energy Group, Woodside Energy, Eni and Germany's SEFE, primarily for US-sourced LNG. Türkiye has signed long-term contracts for a total of 150 billion cubic metres of LNG since the end of 2024, with the majority of deliveries set to commence between 2027 and 2030. According to Bayraktar, American LNG has become more competitive than gas arriving via pipelines from Russia and Iran.
Türkiye, which has imported 5.2 million tonnes of LNG so far this year, imported 3.98 million tonnes in 2024. Increased supply also enables Turkish companies to expand their gas trade and increase their profits. Over the next 10-15 years, approximately 1,500 LNG cargoes are expected to arrive in Türkiye; most of these will be indexed to Henry Hub prices in the US.
The Regional Role of Infrastructure
Two more FSRUs will be commissioned to meet the increase in imports. Ankara plans to send one of these units to Egypt during the summer months to cover Cairo's seasonal gas shortage. Negotiations are ongoing with other countries, particularly Morocco, for similar agreements. These moves position Türkiye not only as a consumer but also as a potential supplier, transit country and regional LNG trader.
Reducing Dependence on Moscow
Türkiye will continue to receive 22 billion cubic metres of gas until the end of 2026 by extending two natural gas supply contracts with Gazprom for one year. However, Russian gas now accounts for less than 40 per cent of total consumption. Ankara aims to diversify its supply base by investing in US gas and creating a competitive market environment through LNG agreements.
Talks with Iran and Turkmenistan
The United States is Türkiye's fourth largest gas supplier, with 5.5 billion cubic metres and a 14 per cent market share. Türkiye is increasing its LNG import capacity with the aim of becoming a regional gas hub, while also holding talks with Iran and Turkmenistan regarding pipeline gas. Extending the Iran agreement, which expires in July 2026, and increasing the volume of Turkmen gas coming via swap are on the agenda.
This multi-layered approach enables Türkiye to enhance its energy security by utilising both LNG and pipeline gas simultaneously. It also paves the way for potential gas trade with the Balkans, Southeastern Europe and Ukraine.