BOTAŞ and Woodside Sign Landmark Long-Term LNG Supply Agreement
Türkiye’s Boru Hatları ile Petrol Taşıma A.Ş. (BOTAŞ), the state-owned enterprise responsible for petroleum and natural gas pipeline operations, has entered into a landmark Heads of Agreement (HOA) with Woodside, one of Australia’s leading energy companies. Under this agreement, Woodside will supply BOTAŞ with approximately 5.8 billion cubic meters (bcm) of natural gas equivalent in the form of liquefied natural gas (LNG). Deliveries are scheduled to begin in 2030 and could extend for a duration of up to nine years. The LNG will be sourced primarily from the Louisiana LNG project in the United States, highlighting both the global nature of energy trade and Türkiye’s long-term strategy for energy diversification.
Strategic Importance of the Agreement
The agreement underscores Türkiye’s growing focus on securing stable and diversified energy supplies to meet the country’s rising demand for natural gas. BOTAŞ has played a central role in Türkiye’s energy infrastructure for decades, handling both domestic pipeline operations and international partnerships. By partnering with Woodside, the company is strengthening its supply chain and positioning itself to tap into the abundant natural gas resources being developed in the United States.
The Louisiana LNG project, a significant initiative in the US LNG sector, has been gaining traction as part of America’s push to become one of the world’s largest LNG exporters. By securing LNG from this project, Türkiye ensures long-term access to one of the most reliable and growing energy supply markets. This agreement also reflects confidence in the US LNG industry’s capacity to meet international demand consistently, even amid shifting geopolitical and market conditions.
The Signing Ceremony
The signing ceremony took place in the United States during the visit of Alparslan Bayraktar, Türkiye’s Minister of Energy and Natural Resources, who was attending the 80th Session of the United Nations General Assembly. The HOA was formally exchanged between Abdulvahit Fidan, Chairman and General Manager of BOTAŞ, and Daniel Kalms, Woodside’s Chief Operating Officer International.
Minister Bayraktar emphasized the importance of the agreement in his remarks. “We are observing the signing of an agreement between a Turkish company and Woodside for the supply of LNG, primarily from Louisiana LNG in the United States, which establishes a connection across continents. We believe this will be the beginning of a successful relationship between BOTAŞ and Woodside. The companies have already expressed their intention to expand the relationship beyond a proposed LNG sales agreement and build a strategic cooperation in the wider region, and we fully support this vision.”
His comments highlighted not only the significance of the deal for Türkiye’s energy security but also the broader geopolitical and commercial ties it helps foster between Türkiye and the United States.
Strengthening International Partnerships
For Woodside, the agreement represents its first long-term LNG supply arrangement with BOTAŞ, and company executives have characterized it as a milestone. Daniel Kalms, COO International, described the agreement as a landmark achievement. “This is a landmark Heads of Agreement between Woodside and BOTAŞ as it is the inaugural long-term LNG supply arrangement between our companies. More importantly, it stands as a testament to BOTAŞ’s confidence in the Louisiana LNG project, the US LNG sector and Woodside’s reputation for reliability and operational excellence.”
Kalms further emphasized that the HOA does not merely represent a commercial arrangement but also carries broader strategic importance. “This agreement also strengthens the Turkish-US relationship and paves the way for building a larger strategic relationship with BOTAŞ that supports energy security and economic growth for Türkiye and the United States. Woodside appreciates the strong support from the Turkish and United States governments to help advance this agreement,” he added.
Broader Implications for Türkiye’s Energy Sector
Türkiye has long been a critical energy hub due to its geographic position at the crossroads of Europe, Asia, and the Middle East. With limited domestic natural gas production, the country has historically relied heavily on imports from pipeline suppliers, particularly Russia, Azerbaijan, and Iran. However, in recent years, Ankara has pursued a strategy to diversify its supply portfolio, reduce reliance on pipeline gas, and increase the share of LNG imports.
By entering into long-term LNG agreements such as this one with Woodside, Türkiye is not only securing supply stability but also enhancing its ability to navigate future market fluctuations. The flexibility of LNG allows the country to balance seasonal demand, manage geopolitical risks, and strengthen its role as an energy bridge for Europe. In addition, Türkiye’s investments in LNG terminals and storage infrastructure have enabled it to handle larger import volumes and even re-export gas to neighboring markets.
The agreement with Woodside complements Türkiye’s broader energy strategy, which also includes developing renewable energy resources, expanding domestic gas exploration in the Black Sea, and investing in nuclear power. Collectively, these initiatives are designed to reduce energy import dependence, enhance national security, and position Türkiye as a regional energy hub.
Global Energy Context
The deal also reflects wider trends in the global energy landscape. LNG has emerged as a key fuel for the energy transition, providing a cleaner-burning alternative to coal and oil while offering flexibility to balance intermittent renewable energy sources. Demand for LNG is expected to grow significantly in Asia, Europe, and the Middle East in the coming decades, driven by energy security concerns, the push for decarbonization, and the need for reliable baseload power.
For the United States, LNG exports have become an important geopolitical and economic tool. By supplying allies such as Türkiye, US LNG projects strengthen global energy security while supporting domestic job creation and investment. Partnerships like the one between Woodside and BOTAŞ showcase how cross-border energy agreements can reinforce diplomatic and trade relationships.
