The recent announcement on energy cooperation between Turkey and the European Union comes as the EU pivots towards reducing dependence on Russian natural gas and securing diverse supply sources, according to the think tank Jamestown in a Thursday note.
Europe is "desperately" trying to reduce its energy dependence on Russian natural gas and diversify its supply by turning to regional actors such as Turkey, Azerbaijan, Central Asia, and the Middle East," analysts said.
The renewed cooperation follows a series of high-level meetings in June. This includes German Energy Minister Katherina Reiche's visit to Ankara for the Turkish-German Energy Forum and discussions between Turkish President Recep Tayyip Erdogan and senior European Union officials on trade, energy, and security cooperation
Analysts said Turkey is fast emerging as an important source of supply, as it is an "important transit country" connecting the EU with "gas-rich" sources such as Azerbaijan, Iran, and Iraq.
"For Ankara, such a stance in Europe enables it to realize its long-held goals of becoming the key transit country for European and regional states in energy contracts," analysts said.
Jamestown noted that factors such as Turkey's vast pipeline network and significant storage potential underscore the country's own energy aspirations.
Turkey currently handles about 10% of the EU's gas imports via transit operations, positioning itself as a critical facilitator of LNG for Eastern Europe, analysts said, citing Cedigaz data.
The country's geographical location in the Southern Gas Corridor gives it additional leverage. It offers a strategic energy route bypassing Russia, ensuring energy security, according to the note.
Turkey imports about 41% of its natural gas from Russia and 22% from Azerbaijan, according to the International Trade Administration. European firms can in this way access gas from Azerbaijan and Turkmenistan via the Caspian Basin, strategists said.
Turkey has invested "considerable effort in persuading Turkmenistan to join the Caspian energy corridor, aiming to dramatically increase the volume of natural gas transported to Europe," according to the note.
Turkmenistan has made gradual progress in energy cooperation with the EU. Setting up a corridor to Europe via Turkey "would carry profound implications for all stakeholders and for Europe, particularly amid shifting paradigms in global energy supply chains," analysts said.
Natural gas transit through Turkey will also allow the country to supply power to Europe through its green-energy transmission initiative.
Turkey has also been diversifying its sourcing strategies, importing LNG from the US. Turkish firms have also started developing the first major natural gas field in the Black Sea.
Analysts said that for Turkey, the prime objectives include diversifying energy partnerships and expanding natural gas transportation volumes.
This will "enable the country to mitigate the shock effects of crises such as a potential continued blockade of the Strait of Hormuz, while simultaneously reinforcing Europe's recognition of the vital need for alternative supply routes," analysts said