Türkiye's state-owned petroleum company BOTAŞ and Australia's Woodside Energy on Monday signed an agreement for around 5.8 billion cubic meters (bcm) of liquefied natural gas (LNG) for up to nine years, starting in 2030.
This deal converts the non-binding heads of agreement signed by the two parties in September into a binding commitment.
Under the agreement, LNG will be sourced mainly from the under-construction Louisiana LNG project in the United States, supplemented by supplies from the broader portfolio of Woodside, Australia's biggest natural gas producer.
Woodside's Louisiana LNG complex, which is the largest foreign investment in the southern state's history, was the first U.S. LNG project to receive the financial go-ahead after President Donald Trump returned to office in January and promised to unleash U.S. energy onto the world.
The project received final approval in late April and is slated to deliver its first gas in 2029.
Woodside had, in early May, said it was looking to sell a further 20%-30% stake amid growing interest in the $17.5 billion project since its final approval.
"This supply agreement with BOTAŞ represents a strategic milestone for Woodside, given it is our first long-term LNG supply arrangement with the Turkish market," said Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford.
"Woodside also appreciates the support shown by the Turkish and United States governments following the announcement of the HOA earlier this year."
The deal comes at a time when the U.S. potentially faces an oversupply of LNG in the next few years, although Woodside remains optimistic about the demand side for the commodity, projecting growth of 50% over the next decade.
