Woodside Energy Inks 9-Year LNG Supply Deal with Turkey's BOTAŞ
The agreement will see the Australian energy giant supply 0.5 million tonnes per annum to the Turkish market, sourced primarily from its upcoming Louisiana LNG facility.
Woodside Energy has finalized a significant long-term Sale and Purchase Agreement (SPA) with Turkey’s state-owned energy firm BOTAŞ Petroleum Pipeline Corporation, securing a new strategic outlet for its liquefied natural gas (LNG) in the Turkish market.
The binding agreement commits the Australian energy major, with a market capitalization of over $30 billion, to supply approximately 0.5 million tonnes per annum (Mtpa) of LNG for nine years. The deal, which converts a non-binding Heads of Agreement signed in September, is set to commence in 2030, providing long-term revenue visibility for Woodside.
This contract marks Woodside’s first long-term LNG supply arrangement to Turkey and is a key step in underwriting the development of its US-based assets. The LNG is expected to be primarily sourced from the company's under-construction Louisiana LNG project, a facility poised to become a significant global energy hub.
"This agreement is a significant milestone for Woodside, marking our first long-term LNG supply arrangement with the Turkish market," said Mark Abbotsford, Woodside's Executive Vice President and Chief Commercial Officer, in a statement published on Business Wire. "It demonstrates the strength and flexibility of our diversified portfolio and our ability to deliver on our global ambitions."
The deal is also being seen as a move that enhances energy security for Turkey, a nation seeking to diversify its energy imports. By securing a long-term supply from a US-based project, Turkey strengthens its energy ties with the United States while gaining access to a reliable new source of natural gas.
Woodside’s Louisiana project is a cornerstone of its strategy to meet growing global LNG demand. The ability to secure long-duration contracts like the BOTAŞ deal is critical for de-risking the multi-billion dollar investment and moving the project toward successful operation. According to reports on the deal, supplies can also be supplemented from Woodside's broader global portfolio, giving the arrangement operational flexibility.
The agreement underscores a broader trend of energy consumers looking to lock in supplies ahead of a projected tightening in the global LNG market. For producers like Woodside, these long-term contracts provide the financial certainty needed to bring large-scale, capital-intensive projects to fruition.
While the financial terms of the agreement were not disclosed, securing a decade-long purchase agreement with a state-backed entity provides a stable demand foundation for a portion of Woodside's future LNG production. The deal also highlights the increasing strategic importance of the Atlantic basin as a key source of LNG for European markets.
Woodside Energy Group Ltd (NYSE: WDS) is an independent oil and gas company headquartered in Perth, Australia, with a diverse portfolio of assets spanning Oceania, Asia, and the Americas. The company has placed a strategic focus on expanding its LNG operations to meet the demands of the global energy transition.