The Turkish state energy company Botas and British oil giant Shell have finalized a 10-year liquefied natural gas (LNG) agreement, as announced by Turkish Energy Minister Alparslan Bayraktar on Monday.

Bayraktar stated that the agreement entails the delivery of 40 LNG cargoes, totaling around 4 billion cubic meters annually, commencing in 2027.

He emphasized that this agreement enhances regional and global trade opportunities, allowing for LNG to be received from the filling port and unloaded at European terminals.

During the signing ceremony, Bayraktar highlighted that this deal bolsters Turkey's ambitions to become a natural gas hub and reinforces its contribution to Europe's energy security.

Earlier in May, Botas also entered into a 10-year LNG contract with ExxonMobil, which will see the Turkish company acquire up to 2.5 million tons of LNG each year from the American firm.

Turkey relies heavily on imported gas to meet its consumption needs, having imported 14.3 billion cubic meters (bcm), or 28.3% of its total consumption of 50.5 bcm last year, in the form of LNG.

According to calculations by Reuters, Turkey possesses the flexibility to meet a significant portion of its national gas consumption with liquefied gas rather than pipeline gas, supported by a gasification capacity of approximately 0.16 bcm per day.