By: Reuters

Turkey has finalized a one-year extension for its two expiring gas import contracts with Russia, which total 22 billion cubic meters (bcm), as part of its strategy to diversify energy sources. Turkish Energy Minister Alparslan Bayraktar announced the short-term extension with Gazprom, noting that Russia's share of Turkey's gas mix has fallen below 40%. Concurrently, Turkey is negotiating a new contract with Iran, set to expire next July, and aims to increase the volume of Turkmen gas it receives via a swap deal through Iran.

In a significant diversification move, Turkey plans to invest directly in U.S. natural gas production to hedge its long-term supply commitments. The country has already signed deals for up to 1,500 LNG cargoes from the U.S. over 15 years, and state company TPAO is in talks with major U.S. firms like Chevron and Exxon. This strategy has made the U.S. Turkey's fourth-largest gas supplier this year, with a 14% market share. To support its growing LNG imports, Turkey plans to add two more floating storage and regasification units (FSRUs).

Beyond gas, Turkey is expanding its nuclear energy capacity to meet rising electricity demand. The country is holding talks with South Korea's KEPCO and Canada's AtkinsRealis to build two new nuclear power plants, with U.S.-based Westinghouse also expressing interest in participating in one of the projects.