Turkey is boldly taking steps to break free from its heavy reliance on natural gas from Russia and Iran, two nations that have been largely ostracized by the West. This strategic move aims to reshape Turkey's energy landscape and reduce its dependence on these suppliers.
Once heavily dependent, Turkey is now diversifying its natural gas sources and boosting domestic production. The country has been actively signing multi-year LNG deals with various suppliers and has already built significant LNG import capacity, including floating terminals. In a recent move, Turkey's state energy company, BOTA?, signed a 20-year agreement with Mercuria to import U.S. LNG, further solidifying its position as a regional hub.
This dual approach to energy security is expected to significantly increase Turkey's LNG imports and domestic output, reducing its reliance on pipeline gas from Russia, Iran, and Azerbaijan. By 2028, Turkey aims to have more than 26 bcm/year of additional LNG imports and domestic production, a significant milestone in its energy independence journey.
But here's where it gets controversial: Iran, which relies heavily on gas exports as a primary source of income, could face a significant blow if Turkey reduces its dependence. With Western sanctions already in place, losing Turkey as a major customer would eliminate a crucial revenue stream for Iran.
Turkey's new strategy is not solely driven by energy security concerns; it also responds to pressure from the United States and the West. U.S. President Donald Trump has urged Turkey to stop purchasing oil and gas from Russia, and the G7 has called for maximizing pressure on Russia's oil exports.
However, cutting ties with Moscow is a delicate matter for Turkey. Since the war in Ukraine, Turkey has been benefiting from deep discounts on Russian oil and gas imports, saving billions and helping control inflation. Erdogan has been navigating a careful path, quietly diversifying while maintaining a balance with the Kremlin.
In addition to its European efforts, Turkey is also turning to Africa to further diversify its energy sources and enhance security. Turkish companies have established a strong presence in Somalia, managing the capital's port and airport, and supplying the country with drone technology. Turkey's influence in Africa is expanding, as evidenced by its recent delegation visit to Niger, where it signed various deals after the nation's military government ordered the U.S. to close its military base.
Turkey's bold moves to reduce its reliance on Russia and Iran's gas dominance are a testament to its commitment to energy independence. While the path ahead may be challenging, Turkey's strategic overhaul could reshape the energy landscape in the region.
What are your thoughts on Turkey's energy strategy? Do you think it can successfully reduce its dependence on Russia and Iran? Share your insights and opinions in the comments below!
