Turkey seeks to renew LNG deal with Algeria ahead of 2027 deadline

Turkey is seeking to renew its long-standing liquefied natural gas agreement with Algeria before the current contract expires in September 2027, Turkish Energy Minister Alparslan Bayraktar said, cited by Al Sharq Al Awsat on May 8. 

State-owned Turkish energy company BOTAS and Algeria’s national oil and gas firm Sonatrach first signed a gas supply agreement in 1988. The deal has been regularly extended ever since.

Speaking to journalists in Ankara, Bayraktar said Turkey hoped to finalise a new agreement within this year. He added that Ankara aimed to secure an extension before the existing contract expires in 2027. Turkey currently imports around 4.4bn cubic metres of Algerian LNG annually under the agreement. Bayraktar noted that volumes could rise to between 6 and 6.5bn cubic metres under a renewed deal, with the duration potentially extended for five to ten years.

The minister also noted Turkey’s ambitions to strengthen its role as a regional energy hub. He said part of the LNG imported from Algeria could be processed at Turkish facilities and then transported onwards to Europe, particularly through Bulgaria. In addition to gas imports, discussions between Ankara and Algiers reportedly included possible cooperation between BOTAS and Sonatrach in oil and natural gas exploration projects in Algerian waters.

Turkey is also reassessing other energy partnerships as it seeks to diversify supplies. Bayraktar recently stated that the contract governing Iranian gas exports to Turkey is due to expire in the coming months, although formal renewal negotiations have not yet begun. Turkey imported roughly 14% of its natural gas needs from Iran last year, according to industry data.