Turkey signs 20-year deal with Mercuria to buy US gas
Model of LNG tanker is seen in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
ISTANBUL, Sept 24 (Reuters) - Turkey has signed a 20-year deal with trading company Mercuria to buy U.S. liquefied natural gas, Energy Minister Alparslan Bayraktar said on Wednesday, as U.S. President Donald Trump pushes for Europe to halt Russian energy purchases.
The deal comes ahead of Turkish President Tayyip Erdogan's meeting with Trump on Thursday.
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Russia is Turkey's largest supplier of gas imports, although Ankara has diversified in recent years. The new deal is one of several it has secured this month ahead of this year's expiry of at least 16 billion cubic metres worth of gas import deals with Russia.
The European Union plans to ban Russian LNG imports into the bloc by the end of 2026 under its latest package of sanctions against Moscow, as Trump presses it to play a more robust role in helping end Russia's war in Ukraine.
Turkey has not yet agreed new supply deals with Russia.
State energy company BOTAS signed the latest deal in New York during Erdogan's visit, agreeing the annual supply of 4 bcm of LNG to Turkey from 2026, with a total supply of some 70 bcm envisaged.
Supplies will be sourced from loading terminals in the U.S. and regasification facilities in Turkey, Europe, and North Africa.
"This agreement will significantly contribute to the $100 billion trade volume target with the U.S.," Bayraktar said, adding that the deal aimed to enhance supply security and diversify Turkey's energy sources.
BOTAS also signed a long-term preliminary LNG deal with Woodside Energy (WDS.AX), Australia's top gas producer, a Turkish Energy Ministry statement said.
That agreement provides for the supply of some 5.8 bcm of LNG to BOTAS for nine years, starting in 2030, mostly from Woodside's Louisiana LNG project.
Russia supplied 40% of Turkey's 52 bcm of gas imports last year. The U.S. was Turkey's fifth largest supplier, slightly behind Algeria, providing 10% of gas imports.
The energy deals come as Turkey moves to improve ties with Washington. On Monday, Ankara said it had lifted retaliatory tariffs imposed in 2018 on a range of U.S. imports, including passenger cars and fruit. The decision was seen as a gesture of goodwill ahead of Erdogan's meeting with Trump.
BOTAS is responsible for Turkey's oil and gas infrastructure and gas trade. Mercuria is one of the world's largest energy and commodity groups.
Reporting by Can Sezer. Writing by Daren Butler. Editing by Louise Heavens and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
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