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EIA: Turkish Stream gas pipeline’s future uncertain

Oil&Gas Materials 16 October 2015 13:30 (UTC +04:00)
The future of the Russian-backed Turkish Stream gas pipeline is currently uncertain, the US Energy Information Administartion (EIA) said in its report
EIA: Turkish Stream gas pipeline’s future uncertain

Baku, Azerbaijan, Oct. 16

By Aygun Badalova - Trend:

The future of the Russian-backed Turkish Stream gas pipeline is currently uncertain, the US Energy Information Administartion (EIA) said in its report.

The Turkish Stream pipeline project was announced at the same time as the South Stream pipeline cancelation, the EIA noted.

"The proposed Turkish Stream pipeline, backed by Russia's majority state-owned natural gas company Gazprom, would have the same capacity to transport natural gas from Russia across the Black Sea, but it would make landfall in Turkey, which is not an EU member country, instead of Bulgaria, which is an EU member country," the EIA's report said.

However, Russia and Turkey have been unable to reach a final agreement on the pipeline and, in July 2015, Gazprom canceled its contract with Saipem, the Italian company contracted to lay the first part of the pipeline, EIA added.

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."

EIA in its report also mentioned other potential pipelines, including a proposal to build a bidirectional pipeline called Eastring from Slovakia, through Hungary and Romania, connecting to Turkey through the existing Trans-Balkan pipeline. Future possibilities for moving natural gas to Turkey and Europe also involve natural gas exports from Iran and Iraq.

The lifting of sanctions on Iran would allow European countries to import gas from Iran, EIA said.

"Although Iran already exports natural gas to Turkey, it has long had plans to export larger volumes of natural gas through Turkey to Europe. However, other hurdles would remain, including agreeing on a natural gas price and meeting Iran's growing domestic demands for natural gas, especially for enhanced oil recovery, power generation, and winter heating," EIA said.

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