Türkiye is increasingly seeking a larger role in the regional energy system as gas, oil and electricity infrastructure expands its connections with the Caucasus, the Middle East and Europe.
Azerbaijani gas moving through Türkiye to Syrian power plants, Iraqi oil travelling through Turkish territory toward the Mediterranean, and electricity links connecting Iraq with Türkiye are examples of a broader shift. Rather than simply serving as a transit route, Ankara is developing an interconnected energy network that links producers, consumers and neighbouring power markets.
The distinction is significant. A transit country primarily benefits from energy infrastructure crossing its territory, while a trading hub can facilitate the exchange, resale and marketing of energy. Network power goes a step further, emerging when multiple infrastructure systems — including gas, oil and electricity — connect several countries through a strategically important state.
Türkiye’s evolving energy strategy can therefore be viewed as a progression from transit corridor to trading hub and, increasingly, toward regional network power.
Gas Strategy Moves Beyond Transit
The Trans-Anatolian Natural Gas Pipeline (TANAP) remains one of the clearest examples of Türkiye’s geographic advantage in the energy sector.
According to official TANAP information, the pipeline was initially designed to transport 16 billion cubic metres (bcm) of natural gas annually. Of that capacity, 10 bcm was designated for European markets, with the possibility of increasing capacity through additional investment.
However, infrastructure alone does not make a country a gas trading hub. A functioning hub requires diversified sources of supply, storage facilities, LNG access, opportunities for gas resale and reliable mechanisms for market trading and price discovery.
Türkiye’s agreement with Shell indicates movement in that direction. The Ministry of Energy and Natural Resources announced that Shell is expected to supply BOTAŞ with approximately 4 bcm of LNG annually beginning in 2027. The agreement covers 40 cargoes per year over a 10-year period.
The arrangement also provides flexibility over loading and unloading locations, including the option to deliver LNG to European terminals. This gives BOTAŞ greater flexibility in managing supplies beyond Türkiye’s domestic market.
Iran Adds Another Supply Dimension
Iran is another important component of Türkiye’s gas supply strategy. The Iran–Türkiye gas pipeline operates under a long-term agreement involving approximately 10 bcm of gas annually.
However, the future of that arrangement has become less certain. Reuters reported in April 2026 that the long-standing contract was approaching expiration and that Türkiye had imported approximately 7.6 bcm of Iranian gas during 2025.
Iran’s importance to Türkiye extends beyond the volume of gas delivered. Its role highlights Ankara’s broader effort to maintain a diversified portfolio of energy suppliers.
Türkiye already receives gas from sources including Russia and Azerbaijan, while its LNG infrastructure provides access to global markets. Maintaining several supply channels gives BOTAŞ greater flexibility in responding to changes in demand, prices and regional energy flows.
This diversification is increasingly important as Türkiye seeks to move beyond its traditional role as an energy transit route. Its expanding pipeline network, LNG access and connections with neighbouring energy markets could give Ankara greater influence over how energy moves between producers and consumers across the region.
