Gazprom not changing stance on ‘Turkish Stream’ (exclusive)

Oil&Gas Materials 7 September 2015 18:18 (UTC +04:00)
Russian company Gazprom still retains interest in the ‘Turkish Stream’ project.
Gazprom not changing stance on ‘Turkish Stream’ (exclusive)

Baku, Azerbaijan, Sept. 7

By Aygun Badalova - Trend:

Russian company Gazprom still retains interest in the 'Turkish Stream' project, involving the construction of a gas pipeline, which is projected to run from Russia to Turkey across the Black Sea and have a pumping capacity of 63 billion cubic meters of gas per year.

Gazprom exclusively told Trend Sept. 7 that the launch of work on the 'Nord Stream-2' doesn't change the company's stance regarding the 'Turkish Stream' project.

Last week, during the Eastern Economic Forum, Gazprom inked an agreement of shareholder of the joint design company, the New European Pipeline AG, which is to deal with creation of the 'Nord Stream-2' pipeline.

This in particular involves the construction of two strings of the gas pipeline with a total capacity of 55 billion cubic meters of gas per year off the coast of Russia through the Baltic Sea to the coast of Germany.

Aside from Gazprom, the joint design company's shareholders will include E.On, Shell, OMV, BASF/Wintershall and Engie (former GdF Suez).

"There has been no statement on part of the company [Gazprom] with regard to a change of stance on the 'Turkish Stream' in view of initiation of work on the 'Nord Stream-2'," Gazprom reiterated.

The project for the 'Turkish Stream' involves the construction of four gas pipeline strings at a capacity of 15.75 billion cubic meters of gas each. The gas, which is to go via the first string, is completely meant for Turkish market, while the remaining volumes will be brought to Turkey's border with Greece, where a gas hub is planned to be located.

In early August 2015, Gazprom was reported to have revised plans on construction of the 'Turkish Stream' and that it would give up the third and fourth strings of the pipeline.

The reason was said to be the "absence of a key agreement on granting Ankara a discount on Russian gas."

Russian media quoted the deputy head of Gazprom, Alexander Medvedev as saying that the 'Turkish Stream' project is planned to start with construction of one string of the gas pipeline, which will deliver gas to customers in Turkey.

He added that the construction of the remaining strings will begin after the assessment of gas demand in Europe.

"We agreed with Turkish partners that first we'll decide on the string number one," Medvedev told reporters. "And afterwards we'll consider other strings."

He noted that Turkey hasn't waived the second and third strings of the gas pipeline.

"And everything will depend on what demand is put forward by Europe," Medvedev further said.