Turkey finalized a one-year extension of two natural gas import contracts with Russia’s Gazprom totaling 22 billion cubic meters (bcm), while advancing plans to invest in US natural gas production, Energy Minister Alparslan Bayraktar announced, Reuters reported.

State gas importer Boru Hatları ile Petrol Taşıma A.Ş. (BOTAŞ) will continue receiving Gazprom supplies in 2026 under the short-term arrangement, with the original contracts expiring at year-end. Turkey is also negotiating a 10 bcm contract with Iran, set to expire in July 2026, and exploring increased Turkmen natural gas imports through an Iranian swap deal currently at 1.3 bcm annually.

Turkey, Russia’s last major natural gas market in Europe, has reduced Russian supplies to below 40% of its natural gas mix. The country has signed long-term LNG purchase agreements, primarily with the US, committing to up to 1,500 cargoes over 15 years.

To hedge this commitment, Turkey plans upstream investments in US natural gas production. State company Türkiye Petrolleri Anonim Ortaklığı (TPAO) is in talks with Chevron and ExxonMobil, with a deal potentially materializing next month, Bayraktar said. The US became Turkey’s fourth-largest natural gas supplier this year at 5.5 bcm, holding a 14% share.

Today, Turkey and Russia are connected through two undersea pipelines: Blue Stream (with a capacity of 16 billion cubic meters per year) and TurkStream. As a result, Turkey is one of Russia’s largest natural gas customers and its last major market in Europe, following Western sanctions.