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Türkiye mulls new long-term LNG deal with US: Energy Minister Bayraktar

An LNG (liquefied natural gas) carrier is docked at a marine terminal during the offloading process in open waters. (Adobe Stock Photo)
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An LNG (liquefied natural gas) carrier is docked at a marine terminal during the offloading process in open waters. (Adobe Stock Photo)
July 29, 2025 02:12 PM GMT+03:00

Türkiye is considering a new long-term liquefied natural gas (LNG) agreement with the United States, according to remarks by Energy and Natural Resources Minister Alparslan Bayraktar following a recent cabinet meeting in Ankara.

Speaking to reporters at the Presidential Complex, Bayraktar said the topic of LNG supply featured prominently in his meeting with U.S. Ambassador to Türkiye and Syria Envoy Tom Barrack. The discussions also touched on joint oil and gas exploration and potential cooperation on small modular reactors (SMRs), a next-generation nuclear energy technology.

“Long-term LNG contracts remain relevant, especially as negotiations are still ongoing,” Bayraktar stated, emphasizing that such agreements could be finalized rapidly due to existing momentum. He indicated that a new LNG deal with the U.S. was a realistic possibility.

LNG accounts for one-third of Türkiye’s gas imports

During the first five months of 2025, LNG accounted for 34% of Türkiye’s total natural gas imports, while the share of LNG imported specifically from the United States stood at just 2.7% over the same period.

Bayraktar also addressed Türkiye’s domestic energy conditions, noting a surge in electricity consumption due to rising temperatures across the country. Despite setting new consumption records, the minister said that electricity production infrastructure remained stable.

Some brief disruptions occurred when power plants faced risks from nearby wildfires, including a close call at a facility in the northwestern city of Bandirma. “We had to shut down several plants that were at risk of fire damage, which caused temporary issues lasting only a few hours,” Bayraktar noted. “Apart from that, the system has functioned without incident.”

High-voltage power lines and industrial gas pipelines illustrate the intersection of electricity transmission and energy infrastructure. (Adobe Stock Photo)
High-voltage power lines and industrial gas pipelines illustrate the intersection of electricity transmission and energy infrastructure. (Adobe Stock Photo)

Türkiye-Iraq pipeline may expand, full capacity sought in new deal

The minister also provided updates on negotiations with Iraq regarding the Türkiye-Iraq Crude Oil Pipeline. The pipeline has a maximum daily capacity of 1.5 million barrels but has never operated at full capacity.

Bayraktar explained that Türkiye has made substantial investments to keep the pipeline operational in recent years. He stressed that the draft of the new agreement sent to Iraq includes a mechanism to ensure full utilization of the pipeline.

Türkiye officially announced on July 21 that the longstanding crude oil pipeline agreement with Iraq, originally signed in 1973, will expire on July 27, 2026.

A section of the Kirkuk-Ceyhan oil pipeline in northern Iraq. (AA Photo)
A section of the Kirkuk-Ceyhan oil pipeline in northern Iraq. (AA Photo)

Pipeline extension hinges on southern Iraq

The proposal also contains a provision to extend the pipeline further south within Iraq. “It does not have to be filled entirely with oil from the north. To reach those capacity figures, the line must reach further south,” Bayraktar said, referring to an incomplete internal Iraqi pipeline that currently reaches only a midpoint. He noted that the uncertainty surrounding the status of that pipeline complicates progress.

Bayraktar mentioned that Türkiye proposed July 2026 as the deadline to complete the extended segment, although completing it earlier would be preferable.

He added that diversifying export routes could benefit Iraq as well, citing recent developments around the Strait of Hormuz as a motivating factor.

July 29, 2025 02:12 PM GMT+03:00
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