Woodside Energy and Turkey’s state-owned BOTAŞ (Boru Hatları ile Petrol Taşıma A.Ş.) have signed a sale and purchase agreement (SPA) for the long-term supply of LNG, marking a strategic step in Turkey’s energy diversification and the Australian company’s global expansion.
Under the terms of the contract, Woodside will deliver to BOTAŞ approximately 0.5 million tons per year of LNG, equivalent to 5.8 billion cubic meters of natural gas, for a period of up to nine years beginning in 2030. The supply will come primarily from the LNG project in Louisiana, USA, currently under construction, along with other sources in the company’s portfolio.
Turkey strengthens energy security with new partners
This agreement represents the formalization of the non-binding preamble signed in September 2023. According to Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer, this is a strategic milestone for several reasons:
- First long-term LNG long-term LNG supply agreement Woodside’s first long-term LNG supply agreement with the Turkish market.
- It demonstrates the flexibility and diversification of Woodside’s portfolio.
- It reflects the strengthening of U.S.-Turkish relations.
- It contributes to energy security and economic growth in both countries.
Woodside has acknowledged the support of the governments of Turkey and the United States in the materialization of this agreement.
An energy alliance that projects economic impact
With this agreement, Woodside takes a firm step forward in its strategy to grow during the global energy transition, betting on reliable energy solutions in strategic markets. At the same time, Turkey is moving towards a more diversified energy matrix, which will enable it to face the upcoming challenges of demand and price stability.
Both parties expect this agreement to be just the beginning of a broader strategic relationship that will promote joint projects and new supply routes, benefiting both their economies and the regional energy balance.
Source: Woodside Energy