Novatek in talks to supply LNG to Türkiye

The timing matters. Global LNG import costs are projected to rise by $39 billion in 2026 as conflict in the Middle East disrupts shipments through the Strait of Hormuz, while low European storage and tighter supply have pushed prices to multi-year highs. For importing countries, securing flexible LNG cargoes has become as much about energy security as price.

For Novatek, a deal with Türkiye would support export growth outside Western markets while the company continues to navigate sanctions pressure around its Arctic LNG 2 project, in which it holds a 70% stake and which has been under U.S. sanctions since November 2023. Novatek already ships gas abroad through Yamal LNG, its main export platform, which began operating in 2017 and has annual capacity of 17.4 million tons.

Investors in the LNG sector are watching for more supply contracts, but also for how sanctions, shipping risks and regional demand shifts affect trade flows and pricing. Cheniere and other exporters stand to benefit from tighter markets, while buyers face higher procurement costs and more exposure to geopolitical shocks.

Novatek did not say how far advanced the talks are, and any agreement would come against a backdrop of elevated LNG market sentiment and persistent volatility. The next catalysts are likely to be further details on contract terms, Türkiye’s import strategy and any broader shift in Russian LNG trade routes.