Turkey is stepping up its imports of liquefied natural gas (LNG) in the face of geopolitical uncertainties and economic sanctions imposed by the United States against Gazprombank. In December 2024, imported volumes reached their highest level since February, reflecting a desire to secure energy supplies during the winter.
Impact of US sanctions
On November 21, 2024, the United States extended sanctions to Gazprombank, a key player in processing payments for Russian natural gas exports. These measures aim to support the war effort in Ukraine while complicating energy transactions for Russia. In response, Turkey is actively negotiating with Washington to obtain an exemption to continue its pipeline imports of Russian gas.
Gazprombank plays a crucial role in maintaining gas flows through the TurkStream pipeline, essential for countries in central and southeastern Europe. However, Ankara, anticipating possible disruptions, diversified its supply by relying more on LNG.
A record increase in imports
Data from Commodity Insights reveals that Turkish LNG imports between December 1 and 17, 2024 reached 1.21 million tonnes, an increase of 33% compared to the same period in 2023. The United States accounts for 64 % of cargoes, followed by Algeria (17%) and Russia (6%). Nearly 82% of these imports were made through spot or short-term purchases, reflecting the flexibility of supplies.
Energy supply strategies
To cope with growing demand during the winter period, Turkey is maintaining its gas storage levels while increasing its purchases on the international market. In addition to Russian gas, it continues to import Iranian and Azerbaijani gas by pipeline. However, recent production problems in Iran, marked by power cuts, could limit these flows in the months to come.
An industry player indicated that this strategy aims to reduce supply risks in an uncertain context. “BOTAS, the public supplier, favors LNG purchases due to sanctions and tensions around Russian flows,” he said.
Pressures on LNG prices
LNG prices in the Eastern Mediterranean remain high due to tight supply and logistical constraints at the Suez Canal. In December, the Eastern Mediterranean DES marker was valued at $12.249/MMBtu, reflecting a significant premium to European indices.
Turkey expects four additional shipments to arrive by the end of December, totaling around 260,000 tonnes. This trend is expected to continue in January and February 2025, strengthening Turkey’s role as a regional energy hub.
