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Woodside Energy has finalized a long-term liquefied natural gas supply agreement with Turkey’s state-owned pipeline operator BOTAS, converting a previously announced non-binding Heads of Agreement into a binding contract. Under the deal, Woodside will supply approximately 0.5 million tonnes per annum of LNG, equivalent to about 5.8 billion cubic meters of natural gas, over a period of up to nine years starting in 2030.
The LNG volumes will be sourced primarily from Woodside’s under-construction Louisiana LNG project in the United States, supplemented by supply from its broader global portfolio. The agreement represents Woodside’s first long-term LNG supply arrangement with the Turkish market.
Woodside said the deal highlights the flexibility of its LNG portfolio and aligns with its strategy to expand long-term contracted volumes tied to new US export capacity. Executive Vice President and Chief Commercial Officer Mark Abbotsford described the agreement as a strategic milestone, emphasizing Woodside’s ambition to deepen its presence across key LNG markets.
The agreement strengthens Turkey’s efforts to diversify gas supply sources amid ongoing volatility in global gas markets and Europe’s broader push to secure long-term LNG contracts following reduced Russian pipeline flows. Turkey has increasingly positioned itself as both a major LNG importer and a regional gas hub, supported by expanding regasification capacity and flexible import contracts.
For Woodside, the deal underpins the commercial case for Louisiana LNG, a cornerstone of its growth strategy in the US Gulf Coast. Securing long-term offtake agreements has been a key priority for developers seeking to advance large-scale LNG projects in a tightening global LNG market expected in the early 2030s.
The contract also carries geopolitical significance, reflecting closer energy cooperation between Turkey and the United States. Woodside noted support from both governments following the initial HOA announcement earlier this year, signaling broader political backing for transatlantic LNG trade.
As global LNG demand continues to rise, particularly from Europe and emerging markets, long-term contracts such as this one are increasingly viewed as critical to balancing energy security, price stability, and investment certainty.
By Charles Kennedy for Oilprice.com
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