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Russia’s Gazprom continues discussing gas issues with Turkey

Oil&Gas Materials 1 April 2015 19:09 (UTC +04:00)
Russia’s Gazprom continues discussing the gas supply issue, especially, the prices for fuel.

Baku, Azerbaijan, Apr.1

By Aygun Badalova - Trend:

Russia's Gazprom continues discussing the gas supply issue, especially, the prices for fuel, the company told Trend on April 1.

Gazprom said it is in constant contact with Turkish colleagues.

Commenting on the impact of the current disagreements between the two sides over the gas prices on the prospects for the implementation of the Turkish Stream gas pipeline project, the company said that the construction of a new gas pipeline in the direction of Turkey and gas prices are two different issues.

Turkish media reported on March 17 that Turkey's BOTAS declined to sign an agreement with Russia's Gazprom on a 10.25-percent discount on the Russian gas supplied to Turkey. The refusal to sign the agreement came after the discount rate proposed by Russia did not suit Turkey.

A BOTAS spokesperson told Trend on March 18 that the reason is that the Russian side demanded additional concessions from Turkey on construction of the Turkish Stream pipeline. However, the company didn't specify what kind of concession it is.

Russia is the main supplier of natural gas to Turkey. Around 26.7 billion cubic meters of gas was supplied to Turkey from Russia in 2014, and it is planned to increase this figure to 30 billion cubic meters in 2015.

Gas prices are not officially disclosed, but Turkey buys Russian gas at $425 per 1,000 cubic meters, according to Turkish media. Turkey pays $335 for 1,000 cubic meters of Azerbaijani gas that is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline). The country pays $490 for 1,000 cubic meters of Iranian gas.

It should be noted that Gazprom and BOTAS signed a memorandum of understanding on Dec.1, 2014 on construction of the Turkish Stream gas pipeline for transporting gas from Russia to Turkey through the Black Sea.

The pumping capacity of the pipeline will be 63 billion cubic meters of gas and it is planned to deliver around 50 billion cubic meters of this volume to the new gas hub on Turkish-Greek border.

It is also planned that the first line of the pipeline, with a pumping capacity of 15.75 billion cubic meters of gas per year, will be stretched to Turkey in December 2016.

Edited by CN

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Follow the author on Twitter: @AygunBadalova

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