Türkiye has extended two expiring natural gas import contracts with Russia’s Gazprom for one year, while simultaneously accelerating plans for a strategic upstream investment in US natural gas production, Energy Minister Alparslan Bayraktar announced.

The move underscores Türkiye's complex, multifaceted approach to energy security, which seeks to diversify supply away from traditional sources while maintaining critical existing relationships.

State gas importer BOTAŞ (Boru Hatları ile Petrol Taşıma A.Ş.) will continue receiving supplies under the two Gazprom contracts, which collectively total 22 billion cubic meters (bcm) and were set to expire at the end of the year. The short-term extension secures the supply through 2026.

As Russia’s last major natural gas market in Europe following Western sanctions, Türkiye remains a crucial customer. The two countries are connected by the Blue Stream (16 bcm capacity) and TurkStream pipelines. Despite this, Türkiye has successfully reduced Russian supplies to below 40% of its overall natural gas mix.

In a significant sign of diversification, Türkiye is advancing its commitment to Liquefied Natural Gas (LNG), primarily from the United States. Türkiye has signed long-term LNG purchase agreements, committing to receive up to 1,500 cargoes over 15 years. The US has already become Türkiye’s fourth-largest natural gas supplier this year, providing 5.5 bcm and holding a 14% market share.

To hedge this massive commitment and create a full value chain, Türkiye plans to make upstream investments in US natural gas production facilities. State company Türkiye Petrolleri Anonim Ortaklığı (TPAO) is currently in talks with US energy giants Chevron and ExxonMobil, with a potential deal expected to materialize as early as next month, according to Minister Bayraktar.

In its ongoing effort to enhance supply stability, Türkiye is actively pursuing other pipeline deals beyond its Russian agreements. Negotiations are currently underway for a new contract to cover the significant 10 bcm natural gas supply from Iran, whose current contract is set to expire in July 2026. Simultaneously, Türkiye is exploring avenues to increase imports of Turkmen natural gas through an existing Iranian swap deal, which is currently set at 1.3 bcm annually.

The dual strategy of extending Russian contracts while forging deeper, multi-decade ties with the US through LNG purchases and investment highlights Türkiye’s determination to secure energy supplies and strengthen its geopolitical position as a regional energy hub. (ILKHA)