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The Turkish government is in talks with Exxon Mobil (NYSE:XOM) over a multibillion dollar deal to buy liquefied natural gas, as it seeks to reduce its dependence on Russian energy, The Financial Times reported Sunday.
Turkey would secure up to 2.5M metric tons/year of LNG through the long-term deal under discussion with Exxon (XOM), Energy Minister Alparslan Bayraktar told FT, adding that the pact could last for a decade.
The minister said the commercial terms of the deal are still under discussion, but 2.5M tons of LNG shipped to Turkey would currently cost ~$1.1B, according to pricing assessments by Argus.
Russia is by far Turkey’s biggest natural gas supplier, accounting for more than 40% of its consumption last year, which mostly arrived by pipelines.
Exxon (XOM) has ambitious plans to expand its LNG portfolio to 40M tons/year by 2030, roughly double the amount in 2020.
