Turkey finalised a one-year extension of its two expiring gas import contracts with Russia that total 22 bcm, and is considering investing in US gas production as it moves to diversify energy sources, Turkey's energy minister said.
Turkey has been steadily cutting the share of Russian supplies in its gas mix, which has now dropped below 40 per cent. The two contracts with Gazprom are due to expire at year end.
Ankara has separately signed a series of deals to purchase long-duration liquefied natural gas, a big part of it from the United States, taking advantage of expected global LNG abundance over the next few years.
"BOTAS finalised the contract" with Russia's Gazprom, Energy Minister Bayraktar said, referring to the Turkish state gas importer in a press conference embargoed for Thursday.
"They will continue to be supplied by Gazprom next year. But we are focusing on more like short term...like one year," he told journalists in embargoed comments on Wednesday.
Turkey is also negotiating a 10 bcm gas import contract with Iran expiring in July next year, Bayraktar said, adding that part of the talks relate to increasing the volume of Turkmen gas Turkey is importing through Iran.
"We'd like to increase the capacity of Turkmen gas coming through the swap deal," he said, adding Turkey signed a one year 1.3 bcm gas deal with Turkmenistan this year, sourcing it over Iran. Imports so far this year stand at around 0.5 bcm.
NATO member Turkey has ambitions to become a gas trading hub has been diversifying its traditional pipeline supply sources.
It plans to invest in US gas production facilities to hedge its commitment to purchase up to 1,500 LNG cargoes from the US over the next 15 years, Bayraktar said in a rare press conference with foreign media outlets.
"To hedge our position and create the whole value chain, we are considering to invest in the upstream in the US market" Bayraktar said. State company TPAO was in talks with US energy majors including Chevron and Exxon and a deal may come next month, he said.
The US became Turkey's fourth largest gas supplier this year at 5.5 bcm, with a 14 per cent share.
Turkey plans to add two more FSRUs, or LNG regasification ships, over the next few years to increase its LNG intake capacity and might later charter them to Morocco and other countries, the minister said.
The country currently has three FSRUs and two on-shore LNG gasification terminals, able to source more than 50 bcm of gas in liquid form.
(Reporting by Can Sezer; Editing by Jonathan Spicer and Thomas Derpinghaus)
