Eni Signs 10-Year LNG Supply Deal With Turkey's BOTAS Starting 2028

Core Insights - Eni has signed a long-term LNG sales agreement with Turkey's BOTAŞ, committing to supply approximately 0.4 million tonnes per annum starting in 2028, marking a significant expansion in Eni's LNG portfolio [1][2] - The agreement reflects Turkey's growing role as a regional gas hub, emphasizing the country's need for flexible gas supply and long-term contracts amid tightening global LNG markets [3][5] - Eni aims to increase its LNG sales to around 20 million tonnes per annum by 2030, leveraging new supply from various international projects [4] Group 1: Eni's Strategic Moves - The long-term contract with BOTAŞ is part of Eni's strategy to deepen commercial ties in high-growth markets [1] - Eni's supply commitment aligns with its goal of expanding LNG sales, supported by projects in Congo, Mozambique, the U.S., and Indonesia [4] - The agreement follows a shorter three-year contract, indicating both parties' interest in establishing a durable gas trading relationship [2] Group 2: Market Dynamics - Turkey's LNG import capacity has rapidly expanded, highlighting its strategic importance in diversifying gas supply away from pipelines [3] - The post-2022 market volatility has led buyers to seek multi-year supply security, while sellers like Eni aim to secure predictable offtake to justify investments [5] - Turkey's emergence as a stable, creditworthy long-term buyer aligns with Eni's strategy of targeting markets with rising demand potential [5]