Turkey poised to become LNG bunkering hub with new tri-party agreement

Turkey is on its way to becoming a key hub for LNG supplies with cooperation from Turkey's largest public institution in the areas of energy, trade, transportation and storage, BOTAŞ, along with Arkas Bunkering and Sumitomo Corporation, according to Turkey's BOTAŞ on Sept. 8. 

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A confidentiality agreement signed between BOTAŞ, which aims to become the most environmentally-friendly public institution in Turkey, Arkas Bunkering, a subsidiary of Arkas Holding and an established maritime transportation company in Turkey, and Sumitomo Corporation, one of the largest holdings in Japan, will see the parties agree on cooperating on the use of LNG - the fuel of the future - as bunker fuel for sea-going vessels.

According to BOTAŞ, LNG has the potential to become the most preferred bunker fuel of the future not only because it is more eco-friendly compared to conventional marine fuels but also due to its low cost.

In a written statement, BOTAŞ said new regulations from the International Maritime Organization (IMO), which necessitates the reduction of emission rates of marine fuels, make the signed tri-party agreement even more crucial.

"The adoption of LNG is of great importance since it represents an almost 25% reduction in carbon dioxide, a 99% reduction in sulfur, and an 85% reduction in nitrogen oxide emissions," BOTAŞ said.

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According to IMO estimations, carbon dioxide emissions will drop by 40% in 2030 and by 70% in 2050, while the number of LNG-powered vessels and LNG bunkering stations is expected to increase significantly.

The tri-party agreement will ensure that Turkey retains its role as one of the largest fuel supply hubs in the East Mediterranean while also promoting LNG as a bunker fuel.