Turkey’s state energy company, BOTAS, and Australia’s Woodside Energy have signed a landmark Heads of Agreement (HOA) deal for long-term liquefied natural gas (LNG) supply from the Louisiana LNG project. The BOTAS-Woodside deal covers about 5.8 billion cubic meters (bcm) of LNG supply over a nine-year period. Deliveries are expected to begin in 2030.
BOTAS-Woodside Louisiana LNG Supply Deal Factsheet
Parties Involved: BOTAS, Woodside Energy
Agreement Type: Heads of Agreement (HOA) for LNG supply
LNG Volume: 5.8 billion cubic meters (bcm)
LNG Source: Woodside’s Louisiana LNG project in the U.S.
Supply Start Date: 2030
Supply Duration: Nine years (2030–2039)
Status: HOA signed. Binding SPA pending
A Look at the BOTAS-Woodside Long-Term LNG Deal
The BOTAS-Woodside long-term LNG deal comes after the Louisiana LNG project received final approval and set a production-start-date of 2029. Woodside’s supply to Turkey is expected from 2030.
Additionally, while the deal is not yet a binding Sales & Purchase Agreement (SPA), both BOTAS and Woodside have expressed intent to stand by the cooperation. Also noteworthy is that the contract is a long-term supply deal and not joint development agreement for the Louisiana facility. Turkey’s state energy company, BOTAS, is an the off-taker for the project.
Deal Significance and the Louisiana LNG Project
For Turkey, the agreement strengthens its energy diversification strategy. The country currently imports most of its natural gas, and long-term contracts help reduce exposure to volatile market prices.
LNG supply from the U.S. also complements Turkey’s efforts to diversify its gas supply sources. Other suppliers to BOTAS include, Mercuria (Switzerland), TotalEnergies (France), Shell (U.K. / Netherlands), Oman LNG, Sonatrach (Algeria), and Italy’s ENI.
For the Australian company developing the Louisiana LNG project, this deal marks entry into the Turkish market. It also provides commercial backing for the Louisiana LNG project. The deal also reinforces Woodside’s growing global footprint as competition intensifies in the global LNG sector.
Global Market Outlook and Impact
The BOTAS-Woodside long-term Louisiana LNG supply deal also reflects wider global trends. This is in the sense that: LNG buyers are seeking longer-term contracts to ensure security – just as BOTAS’ 9-years supply deal (literally) states.
The multinational involvement in the deal (Louisiana LNG project in the U.S., Australia’s Woodside, Turkey’s BOTAS) also underpins the sentiment that LNG continues to remain highly competitive in European and Europe-Asian markets.
