June 22, 2024
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Turkey in Talks with ExxonMobil to Diversify LNG Supplies

Turkey is engaged in discussions with the US energy giant ExxonMobil (XOM.N) for a substantial deal to purchase liquefied natural gas (LNG), aiming to reduce its reliance on Russian energy, as reported by the Financial Times on Sunday.

According to Turkey’s Energy Minister Alparslan Bayraktar, the country seeks to establish a diversified supply portfolio to diminish dependence on any single energy partner.

In an interview with the FT, Bayraktar expressed Turkey’s intention to secure up to 2.5 million tonnes of LNG annually through a potential long-term agreement with Exxon.

Bayraktar mentioned that the discussed pact could span a decade, although the specific commercial terms of the deal with Exxon are still subject to negotiation.

Turkey’s pursuit of a deal with Exxon comes amidst declining Russian exports to Europe. Europe, in response to the conflict in Ukraine, is increasingly turning to global LNG producers to reduce its reliance on Russian pipeline gas.

According to LSEG data, Russian LNG exports to Europe dropped by 1.9% to 15.8 million metric tons in 2023.

As a country with limited domestic oil and gas resources, Turkey heavily relies on imports from Russia, Azerbaijan, Iran, as well as LNG from Algeria, Qatar, the United States, and Nigeria.

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