By Can Sezer
Turkey finalised a one-year extension of its two expiring gas import contracts with Russia that total 22 bcm, and is considering investing in U.S. gas production as it moves to diversify energy sources, Turkey’s energy minister said.
Turkey, Russia’s last major natural gas market in Europe, has been steadily cutting the share of Russian supplies in its gas mix, which has now dropped below 40%. The two contracts with Gazprom 
GAZP are due to expire at year end.
Ankara has separately signed a series of deals to purchase long-duration liquefied natural gas (LNG), a big part of it from the United States, taking advantage of expected global LNG abundance over the next few years.
“BOTAS finalised the contract” with Russia’s Gazprom, Energy Minister Bayraktar said, referring to the Turkish state gas importer in a press conference embargoed for Thursday.
“They will continue to be supplied by Gazprom next year. But we are focusing on more like short term… like one year,” he told journalists in embargoed comments on Wednesday.
IRAN, U.S. GAS TALKS
Turkey is also negotiating an 10 bcm gas import contract with Iran expiring in July next year, Bayraktar said, adding that part of the talks relate to increasing the volume of Turkmen gas Turkey is importing through Iran.
“We’d like to increase the capacity of Turkmen gas coming through the swap deal,” he said, adding Turkey signed a one year 1.3 bcm gas deal with Turkmenistan this year, sourcing it over Iran. Imports so far this year stand at around 0.5 bcm.
NATO member Turkey has ambitions to become a gas trading hub has been diversifying its traditional pipeline supply sources.
It plans to invest in U.S. gas production facilities to hedge its commitment to purchase up to 1,500 LNG cargoes from the U.S. over the next 15 years, Bayraktar said in a rare press conference with foreign media outlets.
“To hedge our position and create the whole value chain, we are considering to invest in the upstream in the U.S. market” Bayraktar said. State company TPAO was in talks with U.S. energy majors including Chevron 
CVX and Exxon 
XOM and a deal may come next month, he said.
The U.S. became Turkey’s fourth largest gas supplier this year at 5.5 bcm, with a 14% share.
Turkey plans to add two more FSRUs, or LNG regasification ships, over the next few years to increase its LNG intake capacity and might later charter them to Morocco and other countries, the minister said.
The country currently has three FSRUs and two on-shore LNG gasification terminals, able to source more than 50 bcm of gas in liquid form.
NUCLEAR WITH THE U.S.
Turkey is expecting its electricity consumption to grow significantly and plans to build two more nuclear plants to complement its base-load power generation capacity.
It is currently holding separate talks with South Korea’s KEPCO 
015760, as well as Canada’s AtkinsRealis 
ATRL for the two plants.
U.S.-based Westinghouse has expressed interest in being involved in the second nuclear plant along with South Korea’s KEPCO, Bayraktar said.
“Westinghouse can be part of it,” Bayraktar said, adding that Turkey is considering inviting some financial investors to the project over the next few months, including the UAE’s Emirates Nuclear Energy Company.
He said Turkey is also playing a mediation role to help release $2 billion in Russian funds that is “stuck” with Wall Street bank J.P. Morgan, which would be used to complete the Akkuyu nuclear power plant that was built by Russia’s Rosatom on Turkey’s southern coast.