The Turkish state energy company BOTAŞ and British oil major Shell have joined forces in a groundbreaking agreement that is set to shape the future of the energy industry. On Monday, Energy and Natural Resources Minister Alparslan Bayraktar announced the signing of a 10-year liquefied natural gas (LNG) deal between the two companies, marking a significant milestone in the partnership between Turkey and the UK.
This historic agreement, valued at $12 billion, is a testament to the strong bilateral relationship between Turkey and the UK. It also highlights the commitment of both countries to work together towards a sustainable and secure energy future. The signing ceremony was attended by high-level officials from both companies, including BOTAŞ General Manager Burhan Özcan and Shell’s Executive Vice President Steve Hill.
Under this agreement, BOTAŞ will purchase 1.5 million tons of LNG per year from Shell, starting from 2021. This will account for around 10% of Turkey’s current annual LNG imports and will significantly contribute to the country’s growing energy needs. The LNG will be delivered to the Ege Gaz İzmir LNG terminal, which is currently under construction and expected to be operational by the end of 2020.
Minister Bayraktar emphasized the importance of this deal in diversifying Turkey’s energy sources and reducing its dependence on a single supplier. He also highlighted the economic benefits of the agreement, stating that it will not only secure a stable and affordable energy supply for Turkey but will also create job opportunities and boost economic growth.
The partnership between BOTAŞ and Shell goes beyond this LNG agreement. The two companies have been working together for over 30 years, with Shell providing technical assistance to BOTAŞ in the areas of exploration, production, and gas market development. This new deal is a testament to the trust and confidence that BOTAŞ has in Shell’s expertise and capabilities.
Shell’s Executive Vice President Steve Hill expressed his enthusiasm for the partnership, stating that it is a great opportunity for both companies to work together towards a cleaner and more sustainable energy future. He also highlighted Shell’s commitment to supporting Turkey’s energy transition and its efforts towards reducing carbon emissions.
This agreement is a major step towards achieving Turkey’s goal of becoming a regional energy hub. With its strategic location between Europe, Asia, and the Middle East, Turkey is well-positioned to become a key player in the global energy market. The country’s growing economy and increasing energy demand make it an attractive market for international energy companies like Shell.
The LNG agreement between BOTAŞ and Shell is also a reflection of Turkey’s efforts towards diversifying its energy mix. The country has been investing in renewable energy sources and aims to increase the share of renewables in its energy mix to 30% by 2023. The partnership with Shell will provide Turkey with a reliable and cleaner source of energy, aligning with its sustainable energy goals.
In conclusion, the 10-year LNG agreement between BOTAŞ and Shell is a significant development that will have a positive impact on both countries. It highlights the strong relationship between Turkey and the UK and their shared commitment towards a sustainable and secure energy future. This partnership not only benefits the two companies but also contributes to the economic growth and development of both nations. With this deal, Turkey takes another step towards achieving its goal of becoming a regional energy hub, and Shell reaffirms its position as a leading player in the global energy market.