Shell Inks 10 Year LNG Supply Agreement with BOTAS

Shell and Boru Hatlari ile Petrol Tasima AS (BOTAS) have entered into a long-term agreement to supply liquefied natural gas (LNG) to Türkiye. Under the 10-year deal, Shell will provide up to 4 billion cubic meters of LNG annually from its global portfolio, starting in 2027. This strategic partnership aims to strengthen Türkiye's energy security and diversify its LNG supply sources.

The agreement was formalized in a ceremony attended by Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar, and Shell CEO Wael Sawan, with BOTAS Chairman and General Manager Abdulvahit Fidan and Shell LNG Marketing and Trading Senior Vice President Tom Summers signing the deal. This agreement marks a significant step in expanding BOTAS's access to liquefied natural gas (LNG), leveraging its extensive terminal and pipeline infrastructure to bolster Türkiye’s efforts in diversifying its gas resources and establishing itself as a key regional gas hub.

The newly signed LNG supply agreement with Shell is set to enhance the diversity and flexibility of BOTAS’s portfolio. Additionally, BOTAS will gain new expertise in LNG transport by receiving the LNG at the loading port as part of the deal. This development is expected to significantly bolster the supply security for Türkiye and the broader region, underlining the strategic importance of such agreements.

Minister Bayraktar stated that Türkiye's primary objective in the natural gas sector, historically reliant on imports for 99% of its needs until the discovery of Black Sea Gas, is to diversify its sources and provide natural gas to both citizens and industries at more competitive and affordable rates. To achieve this, Türkiye has enhanced its infrastructure through the development of international pipelines, LNG terminals, and underground storage facilities, which collectively contribute to a more secure and flexible energy supply system.

Wael Sawan, CEO of Shell PLC, emphasized that Shell is delighted to continue its century-long presence in Türkiye by collaborating with BOTAS to supply LNG, which will support Türkiye's efforts to diversify its natural gas sources. He highlighted that LNG provides a flexible and reliable energy solution and plays a crucial role in the transition towards a lower carbon energy system.

Shell, a prominent player in the LNG sector, has outlined plans to increase its LNG business by 20-30% by 2030 compared to 2022 levels. This expansion aligns with Shell’s broader goal of becoming a net-zero emissions energy company by 2050, positioning it well to provide substantial value as it advances its sustainability objectives.