Turkey Seeks Energy Diversification with ExxonMobil: $1.1 Billion LNG Deal Amidst US-Turkey Improvement and Russian Vulnerability

Turkey is in negotiations with ExxonMobil, an American energy company, for a potential multibillion-dollar deal to purchase liquefied natural gas (LNG).

This comes as Turkey seeks to reduce its dependence on Russia for gas supplies and diversify its energy sources to enhance national security.

The proposed agreement could see Turkey acquiring up to 2.5 million tonnes of LNG annually from Exxon, with an estimated cost of around $1.1 billion per year.

The deal's duration is yet to be determined but could last up to a decade.

Exxon is holding talks with Turkey to help the country reduce its dependence on Russian energy, particularly natural gas, which is crucial for electricity generation.

In 2022, Turkey imported all the gas it consumed, with Russia being its largest supplier, accounting for over 40% of its consumption.

However, Turkey is concerned about the weaponization of energy supplies, as seen in Russia's recent cutoff of gas deliveries to the EU, leaving it vulnerable to supply disruptions.

Turkey has maintained close relations with Russian President Putin despite NATO allies' stance during the Ukraine war.

However, as some of Turkey's contracts with Russia expire in 2025, Ankara is exploring alternatives.

Improving relations between Turkey and the US are providing new options for Turkey, including a reported deal with Exxon.

Despite differing views on various issues, the relationship between Turkey and the US has become more friendly.