Canada and Turkey announce strengthening of LNG ties

Canada and Turkey have inked a joint statement to strengthen cooperation in LNG, nuclear and renewable energy, as well as critical minerals, the two countries announced on October 23 during Canadian Prime Minister Mark Carney’s three-day tour of Turkey. 

The two countries discussed opportunities to leverage Canada’s burgeoning LNG export industry. Turkey makes for a natural partner in expanding Canada’s growing LNG export industry given its role as a key regional gas trading hub.

Turkey is also a major importer of LNG with supply agreements with the US, Algeria, and Nigeria among other suppliers.

State-run energy firm BOTAS is in the midst of ramping up its import capacity and in July began construction of a fourth storage tank at the firm’s Marmaraereglisi Terminal in the country’s northwest.

The new 160,000 cubic-metre storage tank will increase the import terminal’s storage capacity by almost 60% to 415,000 cubic metres. The expansion of the storage capacity at the terminal will play a key role in improving Turkey’s flexibility for storage of natural gas supplies. Turkey currently possesses two LNG import terminals and three floating storage and regasification units.

Meanwhile, Canada is in the midst of ramping up LNG production and development of new facilities. The countries flagship project LNG Canada shipped its first cargo last July. The project’s Phase 2 expansion, which will double the production capacity from 14mn tonnes per year (tpy) to 28mn tpy with the addition of two more liquefaction trains was authorised in late September.

Canadian LNG projects on the country’s west coast have long eyed buyers in East Asia and Southeast Asia. However, there is growing interest in Europe for Canadian LNG. Ottawa is also examining the possibility of an export terminal in either northern Manitoba or Quebec to bring gas from western Canada and export it to Europe.