Woodside and BOTAŞ Seal Long-Term LNG Deal

Woodside, an Australian firm, and BOTAS, a Turkish firm, enter into a long-term LNG supply contract, which enhances cross-border energy collaboration.

Woodside Energy of Australia and the state-owned pipeline operations company of Türkiye, Boru Hatlari ile Petrol Tasima A.S. (BOTAŞ), have entered into a binding sale and purchase agreement to have the liquid natural gas supplied in the long term as an extension of the bond within the oil and gas energy circles across the world.

Woodside will supply BOTAŞ with approximately 5.8 billion cubic meters of natural gas equivalent, which is about 0.5 million tonnes per annum of LNG, over a maximum period of nine years starting in 2030. The transaction formalizes a non-binding Heads of Agreement that was established earlier this year, converting it into a binding obligation and indicating a growing confidence in the long-term fundamentals of oil and natural gas demand.

The under-construction Louisiana LNG project will supply the majority of LNG volumes in the United States, and the diversified portfolio of Woodside will be used to source the LNG volumes. The agreement as described by the Woodside executives indicates the capability of the company to provide flexible supply solutions within the fast-changing oil and gas industry.

Another promotion in the partnership is the reinforcement of energy cooperation between Türkiye and the United States, where the cooperation aids in facilitating energy security and economic growth. In the case of BOTAŞ, the acquisition improves the variety of supply, whereas in the case of Woodside, it symbolizes an operational entry into the Turkish oil and gas market.