Turkey Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in turkey, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Oil and Gas Equipment – LNG and LNG Terminals, Upstream, Downstream and Midstream
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Overview

Türkiye has developed one of the largest LNG import infrastructures in Europe, comprising two large onshore terminals and three Floating Storage and Regasification Units (FSRUs) placing the country second in Europe after Spain in total LNG import capacity, ensuring significant flexibility in sourcing and delivering natural gas to the domestic market. Turkish Government is planning procure two more FSRUs and an LNG tanker.

Türkiye imports 50-60 billion cubic meters of natural gas every year and is one of the largest NG consumers in Europe. Türkiye in addition LNG import terminals, has 7 pipeline connections with its neighbors, making Türkiye a transit country for oil and gas. Although not meeting the full demand, Türkiye has some gas production in offshore Black Sea and in the European part of Turkiye (Thrace) onshore, and oil production in the Southeastern Türkiye. First full-size unconventional oil and gas exploration will be conducted by horizontal drilling and fracking in 2027 in the prospective areas in the Southeast and Thrace.

Türkiye has two gas storage facilities and has plans to expand them. Turkish national oil company TPAO is exploring oil and gas prospects in other countries and is always open to cooperation in Türkiye and abroad with foreign companies including American companies.

Oil Imports

Türkiye imports almost 49 million tons crude oil and refined oil products such as gasoline, diesel, fuel oil, aviation fuel, marine fuel, and other products, and exports approximately 15 million tons of similar products. In recent months, crude oil production has increased in Gabar mountain and has major potential. A couple of U.S. firms together with Turkish national oil company TPAO will soon start hydraulic fracturing (fracking) in potential oil prospects in the southeastern Turkiye and Thrace. In Turkiye, major refined oil products distributors are Petrol Ofisi, Shell & Turcas Petrol, Opet, Guzel Enerji, BP, TP Petrol, Aytemiz, Socar, Kadoglu, Akpet, etc.

Tupras is the largest refinery company with four refineries, and Socar is the second largest. Majority of the refined oil products are sold in the provinces of Istanbul, Ankara, Izmir, Bursa, Antalya, Konya, Kocaeli, Mersin, Gaziantep, Adana, Manisa, etc. In 2024, diesel types had almost 80% domestic market share, gasoline types had almost 15%, aviation fuels 3.66%.

Refineries 

TUPRAS is Türkiye’s largest oil refiner with four refineries: Izmit refinery, established in 1961, has a refining capacity of 11.3 million tons; the Izmir refinery has a capacity of 11.9 million tons; the Kirikkale refinery has a capacity of 5.4 million tons; and the Batman refinery has a refining capacity of 1.4 million tons. TUPRAS has been modernizing and expanding its facilities, and U.S. firms have become suppliers of equipment and services. TUPRAS routinely issues repair, maintenance, and modernization tenders which U.S. firms are primed to procure. 

Türkiye’s most recent refinery, owned and operated by SOCAR is in Aliaga, and began operating in 2019 and has an annual production capacity of 10 million tons. This refinery is integrated to SOCAR’s PETKIM petrochemical plants complex. STAR Refinery meets approximately 25% of Türkiye’s demand for processed crude oil products. It produces petroleum products such as diesel, jet fuel, LPG, sulfur, petroleum coke, and critical raw materials for the petrochemical sector. The refinery has an annual crude oil processing capacity of 11 million cubic meters.

Natural Gas and LNG Imports

Turkiye imported approximately 52 billion cubic meters (bcm) of natural gas (NG) in 2024. Almost 24% of the imports were liquified natural gas (LNG) and pipelines from Russia, Azerbaijan and Iran supplied 76% of the total imports. Russia accounted almost 41% of the imports, Azerbaijan almost 22%, Iran 13.5%, U.S.A. almost 11% (LNG), Algeria almost 10% (LNG), and the rest in small amounts from other countries.

Türkiye has developed one of the largest LNG import infrastructures in Europe, comprising two onshore terminals—Marmara Ereğlisi (13.5 bcm/year, ~9.9 mtpa) and EgeGaz Aliağa (14.6 bcm/year, ~10.7 mtpa)—and three Floating Storage and Regasification Units (FSRUs): Etki in Aliağa (5.3 bcm/year, ~5.7 mtpa), Dörtyol in Hatay (10.2 bcm/year, ~7.5 mtpa), and Saros in the Gulf of Saros (7.6 bcm/year, ~5.6 mtpa). Collectively, these facilities provide Türkiye with a total regasification capacity of approximately 51.3 bcm per year (about 39–40 mtpa), placing the country second in Europe after Spain and ensuring significant flexibility in sourcing and delivering natural gas to the domestic market.

In Q1 2025, Türkiye was the second-largest LNG importer in Europe. Remarkably, it accounted for 37% of the region’s LNG import growth, thereby intensifying competition with the rest of the Mediterranean and Northwestern Europe for available supply from the Atlantic Basin. Historically, Algeria has been Türkiye ‘s top LNG supplier, mainly due to long-term agreements with Sonatrach. However, since 2019, the share of US LNG has been increasing. Between 2021 and 2024, the US ranked as the second-largest supplier, except in 2022, when it overtook Algeria to become the leading LNG supplier.

Türkiye and Russia started their gas cooperation with a major contract in 1997, delivering 16 Bcm/a via the Blue Stream pipeline which commenced in 2003 and is set to expire in 2025. The TurkStream pipeline began delivering about 8 Bcm/a of gas starting 2020. In January 2022, the legacy contract was extended to 2025, with BOTAŞ increasing its delivery volume from 4 Bcm/a to roughly 6 Bcm/a. Additionally, the contract for 3 Bcm/a with private companies was extended until 2043.

Türkiye ‘s gas relationship with Iran, initiated by a 1996 contract for 9.6 Bcm/a, has encountered several challenges, including delays in contractual delivery amounts, BOTAŞ requesting price reductions and the removal of the “take or pay” clause, leading to two arbitration cases. Gas supplies have been inconsistent, especially during winter months, due to Iran prioritizing its domestic needs. The 30-year agreement is set to expire in July 2026.

Türkiye began importing 6.6 Bcm/a of gas from Azerbaijan in 2007 via the Baku-Tbilisi-Erzurum (BTE) pipeline under a 15-year contract. In 2018, BOTAŞ secured an agreement for 6 Bcm/a from Shah Deniz Phase II, valid until 2033. The gas is transported to the Georgia-Türkiye border through the South Caucasus Pipeline (SCP) and enters the Trans-Anatolian Pipeline (TANAP). The 6.6 Bcm/a contract expired in April 2021 and was replaced by a 3-year contract for 3.5 Bcm/a, which was extended until 2030 in June 2024. 

Türkiye a Regional Gas Hub

Türkiye plans to become a regional gas hub. In 2024, BOTAŞ secured multiple 10-year firm contracts totaling approximately 5 MMtpa, plus a 1 MMtpa preliminary deal with major portfolio players. BOTAŞ has also signed supply agreements with European markets and is seeking greater cross-border integration with Greece and Bulgaria. Additionally, negotiations are underway for the acquisition of the Vasant 1 FSRU from India-based Swan Energy, which would boost supply flexibility by leveraging the strategic positioning of the Saros terminal. The supply portfolio is further strengthened by increasing upstream production from the Sakarya field and the existing mix of pipeline contracts.

Türkiye has expressed strong willingness to expand the Southern Gas Corridor, emphasizing that it has already completed the key infrastructure needed to double gas flows to Europe. The TANAP (16 Bcm/a) pipeline can be expanded to 31 Bcm/a and TAP (10 Bcm/a) pipeline to 20 Bcm/a. However, the TAP consortium has agreed only to expand capacity to 11.2 Bcm/a by 2026. Additionally, the country has signed a pipeline supply deal with Turkmenistan in Q1 2025, under which 1.3 Bcm of gas will be received via a swap arrangement in 2025 with the duration extendable for five years. However, technical and geopolitical risks associated with transit through Iran remain. The long-term plan includes building a dedicated Trans-Caspian pipeline to connect Turkmen gas to Türkiye via Azerbaijan. BOTAŞ has held an import license for Turkmen gas since the late 1990s.

Türkiye and Iraq agreed on building a new oil and gas pipeline as part of the broader $17.9 billion “Development Road” initiative. The centerpiece is oil pipelines, but the deal also includes plans for gas pipelines, with Türkiye initially supplying 5 Bcm/a of gas to Iraq, and in future reversing the flow as Iraq’s domestic production increases.
Towards the end of 2024, BOTAŞ and Hungary’s MVM CEEnergy were engaged in discussions to renew their gas supply agreement for the 2025-2026 period. Additionally, there is a ~1 Bcm agreement with Moldova that began in October 2023 for an unspecified duration. Moreover, a 13-year contract signed in January 2023 allows Bulgaria’s Bulgargaz to import 1.5 Bcm/a via Turkish infrastructure, but this deal is under review due to economic viability concerns for Bulgaria.

Black Sea Gas Production

In April 2025, the Sakarya gas field reached a plateau production rate of 9.5 MMcm/d, completing the first phase of the development. Further growth is anticipated with the commissioning of Türkiye ’s first floating production, storage and offloading (FPSO), which is undergoing retrofitting. According to Turkish energy ministry this deployment will increase the daily production to 20 MMcm/d in 2026 and 40 MMcm/d by 2028.

Türkiye – Egypt Cooperation

In mid-May 2025, BOTAŞ and Egypt’s EGAS finalized an agreement for BOTAŞ to supply an FSRU to Egypt during the summer of 2025, when Egypt’s gas demand peaks and Türkiye ‘s demand is lower. Reportedly, BOTAŞ will deploy the Ertuğrul Gazi from its fleet of two FSRUs.

Domestic Gas Production & Wholesale License

Companies in Turkiye also produced approximately 2.3 bcm NG in 2024. Natural gas exploration and production activities are carried out under exploration and production licenses issued by the General Directorate of Mining and Petroleum Affairs (MAPEG) in accordance with the Turkish Petroleum Law No. 6491. Although production is not classified as a market activity under the Natural Gas Market Law, production companies are permitted to market the natural gas they produce—upon obtaining a wholesale license from the Energy Market Regulatory Authority (EMRA)—to wholesale companies, importers, exporters, distribution companies, compressed natural gas (CNG) sales companies (at the wellhead), CNG transmission and distribution companies, or eligible consumers. Furthermore, production companies may also export the natural gas they produce, if they obtain an export license.

The companies that have obtained a wholesale license from the Energy Market Regulatory Authority (EPDK) are as follows: Türkiye Petrolleri Anonim Ortaklığı (TPAO), Thrace Basin Natural Gas (Türkiye) Corporation Türkiye (THRACE BASIN), Park Place Energy Limited (PARK PLACE), Atlı Makina A.S.  (ATLI MAKİNA), Petrogas Petrol Gaz ve Petrokimya A.S. (PETROGAS), Transatlantic Petroleum Crude Oil and Natural Gas Exploration and Research A.S. (TRANSATLANTIC PETROLEUM), Marsa Türkiye B.V., and     Arar Petrol A.S.  (ARAR PETROL).

Export Opportunities

U.S. firms should stay abreast of related developments for export opportunities, in addition to LNG supplies, for the supply of compressor equipment, offshore and onshore oil and gas exploration and production equipment, unconventional oil and gas production equipment and services, horizontal drilling, fracturing equipment and services, oil refinery equipment and services, gas processing and storage facilities. 

Gas Storage

Türkiye has two major underground natural gas facilities: the Silivri facility and the Tuz Gölü facility, both owned and operated by BOTAŞ. Located near Istanbul, the Silivri facility is established in a depleted gas field and has a capacity of 4.6 Bcm. Plans are underway to expand this capacity to between 5.6 and 6 Bcm in 2 to 3 years (2025-2028). Situated in Aksaray province in Central Anatolia, the Tuz Gölü facility was developed using artificial salt caverns. It has a storage capacity of 1.2 Bcm in its operational caverns. An expansion project is underway to increase this capacity to approximately 6 Bcm by adding more caverns, with completion expected by 2028.

Natural Gas Distribution and Transmission 

Türkiye’s main NG transmission lines are owned and operated by BOTAS. There are currently 72 NG distribution companies in Türkiye which fall under the Natural Gas Distribution Companies Association of Türkiye (GAZBIR). GAZBIR owns the Natural Gas and Energy Training Certification Inspection and Technological Service Co, Ltd. (GAZMER), accredited by the Vocational Qualifications Authority (VQA) and the Turkish Accreditation Agency, which operates to meet demand in training, research and development, laboratory requirements, and common technological needs. GAZBIR is a member of EUROGAS and the International Gas Union.

Leading Best Prospects

  •  LNG supply to Türkiye
  • Offshore Platforms
  • Offshore exploration and production vessels
  • Subsea production wells and pipelines
  • Compressors and metering stations equipment
  • FSRU vessels
  • Green and blue hydrogen production
  • NG storage equipment and services
  • Refinery upgrade opportunities
  • Artificial intelligence, data analytics, and automation systems for refineries

Resources

 

For further information on the energy sector, contact:
Serdar Cetinkaya
Eurasia Energy and Mining Leader
U.S. Commercial Service
U.S. Embassy, Ankara, Türkiye
Serdar.Cetinkaya@trade.gov

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