Turkey has extended its LNG supply deal with Algeria for three years, reported Reuters.

In a statement on X, Turkey’s Energy Minister, Alparslan Bayraktar, said the deal was signed between Turkish Government-backed energy company Botas and Sonatrach, an Algerian state-owned oil and gas company.

Under the agreement, which was signed during Turkish President Tayyip Erdogan’s official visit to Algiers, Turkey will continue to buy 4.4bcm of LNG from Algeria annually.

The original gas supply agreement between Botas and Sonatrach was signed in 1988, and has since been renewed.

Following the deal, the current contract has been extended until 2027. It was scheduled to expire in October 2024.

Speaking on the two nations’ trade, Erdogan stated that Turkey wants to expand its energy and renewable energy ties with Algeria by forming new alliances, reported the Turkish news outlet Anadolu Agency.

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By GlobalData

Turkey, which has limited gas and oil reserves, is heavily dependent on energy imports from Algeria, Azerbaijan, Iran, Nigeria, Qatar, Russia and the US.

In April this year, Turkey Petrolleri Anonim Ortaklığı commenced production from the Sakarya field within Block C26 in the western Black Sea.

Initially, the Sakarya field is expected to produce ten million cubic metres (mcm) of natural gas.

710bcm natural gas field in the Black Sea is also being developed by Ankara.

Earlier this year, Botas signed an LNG supply deal with Oman LNG.

By 2025, the Omani state-owned company will supply one million tonnes of LNG annually.