Turkey strikes natural gas supply deal with Azerbaijan

Turkey has secured a supply of 33 billion cubic metres (bcm) of natural gas from Azerbaijan over 15 years, according to the country’s energy ministry.

State-owned Turkish Petroleum Pipeline Corporation (Botas) has signed a deal with Azerbaijan’s Socar, the UAE’s Abu Dhabi National Oil Company (Adnoc) and France’s TotalEnergies on the sidelines of Baku Energy Week to secure gas from Azerbaijan’s Absheron field, the ministry said in a post on X.

The final investment decision for the second phase of the Absheron project is expected this year. Annual gas production is expected to begin in 2029 and reach more than 4 bcm, Reuters reported.

About half of the production is expected to be supplied to the Turkish market under the agreement, a Socar official said.

In September, Botas signed a 20-year liquefied natural gas supply deal for 70 bcm with commodity trader Mercuria.

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Ankara is also planning a massive upgrade to its oil storage capacity, with Botas set to commission 40 new oil storage tanks at the port of Ceyhan on the Mediterranean.

“This project will strengthen Turkey’s resilience against energy crises and enable the country to play a more decisive role in regional energy markets,” said Botas general manager Abdülvahit Fidan.

In July 2025, Turkey secured $2.8 billion in green funding for the Kars-Iğdır-Aralık-Dilucu railway project, which will increase the freight transport potential on the Middle Corridor.

The Middle Corridor, known as the Trans-Caspian International Transport Route, connects China to Europe through Central Asia, the Caspian Sea, the South Caucasus and Turkey.