South Stream, Turkish Stream less likely to be built

South Stream, Turkish Stream less likely to be built

Baku, Azerbaijan, Feb. 11

By Elena Kosolapova - Trend:

There is a small probability that the South Stream or Turkish Stream projects will be implemented, says Alexei Belogoriev, a deputy director at the Russian Institute for Energy and Finance.

"The EU is not considering them [the pipelines] as the urgent need to meet its demand," Belogoriev told Trend Feb. 11. "But Russia has already excess capacity for the transportation of gas to Europe."

Russia suspended the South Stream project, designed to supply Russian gas to Europe bypassing Ukraine, in December 2014. Russia said "the EU's non-constructive position" was the reason for the project's suspension.

Then it was decided to build the Turkish Stream through the territory of Turkey, instead of the South Stream. But the project came under threat in late 2015 due to sharp deterioration of relations between Moscow and Ankara.

However, in an interview with RIA Novosti Feb. 9, Russian Ambassador to Turkey Andrei Karlov said his country doesn't waive the Turkish Stream, saying that it is difficult to predict the pipeline's further situation amid the crisis in the Russia-Turkey relations.

Aside from that, Russia's permanent representative to the EU, Vladimir Chizhov has said earlier that he does not rule out the possibility of resuming the South Stream project.

Belogoriev further told Trend that both projects had only a political purpose - to bypass Ukraine, rather than an economic motive.

The expert believes that the Nord Stream 2 project's implementation in the Baltic Sea is sufficient for the gas delivery to Europe bypassing Ukraine, adding this is seen by Gazprom as a priority.

"Therefore, I think the construction of the South Stream and especially the Turkish Stream will not be considered seriously," he said.

He added that under the current economic conditions, including low gas prices, the project for the Turkish Stream will be unprofitable, adding that it is much more efficient to supply gas via the existing Trans-Balkan gas pipeline.

The expert recalled that Russia's Gazprom also has investment plans on the Power of Siberia and the Nord Stream 2 gas pipelines.

However, Belogoriev said that Gazprom has a problem with lending.

"It is too expensive for Gazprom to lend in foreign markets due to the economic situation as a whole, the deterioration of the investment climate in Russia, and the sanctions, which, although indirectly, affect the company," he said.

"Given the current oil and gas prices, the company has no extra funds to make investment in the Turkish Stream," added Belogoriev. "I don't see any financial institutions, which will fund such projects as Turkish Stream and South Stream at normal rates, given that there is no economic need for them."

As for the prospects of Russia's refusal to transit gas through Ukraine, Belogoriev said that the demands for gas in the EU can be fully covered if it is possible to build and fully use the Nord Stream 2 and use the idle capacity of the Nord Stream 1.

At the same time, he predicted that the transit of gas to Ukraine's neighbors, namely, Moldova, the Balkans and most likely Turkey and Slovakia, will continue as it would be very expensive to supply gas there via Poland or Germany.

Belogoriev also said that in case of an optimistic development for Gazprom, the gas transit through Ukraine will be reduced to 20-30 billion cubic meters per year.

But in case of a pessimistic development, he predicted that the transit volume will be much larger, as no one can guarantee the effectiveness of the Nord Stream 2 as part of the EU's Third Energy Package.


Follow the author on Twitter: @E_Kosolapova

Subscribe to Trend in Google News! Subscribe
Turkmen officials to discuss TAPI project in Kabul
Turkmen officials to discuss TAPI project in Kabul
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Brent falls to two-week low after inventory shock
Brent falls to two-week low after inventory shock
Loading Bars
Indo-Pacific is a "Fact Of Life": S Jaishankar
Oman approves Covaxin shots for travel without quarantine
SOCAR Turkey’s sales down year-on-year
Kazakhstan, Russia resume negotiations on Khvalynsk, Imashev fields
Kazakhstan’s national postal operator to buy spares via tender
Turkmen officials to discuss TAPI project in Kabul
SOCAR Turkey sees increase in assets
Kazakhstan completes repair of Pavlodar oil chemistry refinery ahead of schedule
Azerbaijan allows vaccination against COVID-19 with fourth dose
Pasha Bank is ready to support new projects on developing Azerbaijan's startup ecosystem - board member
Kazakhstan increases petroleum oil exports to France
Turkmenistan, Iran expand bilateral relations
Uzbekistan to subsidize difference in average gas price
Merck raises full-year profit target after cancer drug sales help Q3 beat
Nar supports publication of book on veteran teachers
Renesas buys Israeli Wi-Fi chipmaker Celeno for $315m
Turkey receives positive signals from Armenia – Turkish defense minister
Indian forex reserves surge by $58.38 bn in H1
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Kazakhstan's economy to grow faster than in other EAEU states - EDB expectations
Georgia to keeps tight monetary policy – NBG
India, Sri Lanka and Maldives hold joint exercise on maritime security
Kazakhstan boosts manufacturing volume of gold
Indian Govt looks to revive tourism sector as jab drive gathers steam
Canadian company to invest in exploration of gold deposits in Uzbekistan
Turkish company talks plans for crop, livestock production in Azerbaijan's Karabakh
21 subject olympiad winners enter Baku Higher Oil School
IRENEX shares data on sales of Iran’s NIOPDC at energy exchange
Bahar Azadi gold coin price again falling in Iran
Azerbaijan’s 9M2021 imports of Turkish chemical products increase
Kazakhstan to build capacious renewable energy facilities
PM Modi reaffirms India’s focus on free & open Indo-Pacific
Iran reveals COVID-19 data for October 28
Chief Financial Officer of Azerbaijan's Bravo supermarket chain talks profit prospects
Pension savings in Kazakhstan increase
Iran's Bistoon TPP boosts electricity generation
Romania plays very important role in Azerbaijan-NATO cooperation plan - Azerbaijani president
Konkan Shakti 2021: India, UK take part in maiden bilateral tri-service exercise
Georgian public foreign debt on the rise
During second Karabakh war, we felt support of people of Kyrgyzstan - President Ilham Aliyev
Turkey occupies very important place in international arena - Azerbaijani President
EBRD talks details of putting out former uranium mining sites in Uzbekistan
Indian-origin Anita Anand is Canada's new Defence Minister as PM Trudeau reshuffles Cabinet
Kazakhstan reports decrease in volume of money transfers
Azerbaijan's Barda city commemorates victims of Armenian aggression during second Karabakh war (PHOTO)
Russia’s Gazprombank projects Azerbaijan’s refinancing rate level
Iran’s Shahid Tondgooyan Petrochemical Company reaches increase in production
Armenia ready to begin delimitation and demarcation of borders with Azerbaijan
Azerbaijani President congratulates Turkish counterpart
Saipem announces time of returning EBITDA to pre-COVID level
Iran shares amount of needed money for construction of roads, bridges in Khuzestan Province
Iran reveals volume of trade turnover via border terminals in Sistan & Baluchestan Province
Saipem reveals revenue forecasts for 2H 2021
Turkey acting jointly with Azerbaijan regarding normalization of relations with Armenia - FM
Saipem sees significant increase in revenues
Turkey reveals number of ships docking at Tekirdag port in 9M2021
Armenia lagged behind Azerbaijan in armaments issue – Armenian president
Azerbaijan talks ongoing work to restore houses damaged from Armenian shelling during Second Karabakh War - Trend TV (PHOTO)
Ryanair vows 5-day refund turnaround after COVID criticism
Hungary talks on measures to diversify gas supply routes
Hungary’s gas reservoirs 86% full, well above EU average
Investment projects in Turkmen oil and gas fields in Caspian Sea discussed at int'l conference
BSTDB ready to support Azerbaijan to meet emission commitments under Paris agreement (Exclusive)
Bank Keshavarzi Iran sees increase in loans issued for purchase of agricultural machinery
SOCAR’s STAR Refinery boosts crude imports
Turkmenistan Airlines simplifies clearance of int’l cargo transportation
Turkmenistan, Danish Haldor Topsoe to co-op in ammonia, methanol production
Azerbaijan sees significant growth in investment in capital market
Iran increases exports through Bilasuvar border checkpoint
Remains of two people found in Azerbaijan's liberated Aghdam - Prosecutor General's Office
Azerbaijan to discuss change of state duties
Iran announces amount of currency sold at NIMA exchange rate
Kazakh gas producing company opens tender to attract designing services
Iran allocates financial aid to support maritime industries
President Ilham Aliyev receives credentials of incoming Romanian ambassador (PHOTO/VIDEO)
President Ilham Aliyev receives newly appointed ambassador of Kyrgyz Republic (PHOTO/VIDEO)
Baku Stock Exchange talks readiness to issue "Green Bonds" for Azerbaijan's liberated lands
Israel 2021-22 budget clears parliament's finance committee
Kazakh banks increase lending value m-o-m
Iran builds prefabricated homes in Kish Island
Azerbaijan's Bravo auctions its first bonds via Baku Stock Exchange (PHOTO)
Azerbaijan completes repairs of houses in Jojug Marjanli damaged by Armenia’s shelling (PHOTO)
Azerbaijani oil prices decline
Georgia releases data on COVID-19 cases for October 28
Iran's Astara port , Russia's Astrakhan port declared sister ports
Kazakhstan reports increase in all types of deposits
Kazakhstan to consider construction of reservoirs in Kyzylorda region
Kazakhstan doesn’t plan to suspend scheduled flights – ministry
Iran reactivates fuel stations after cyberattack
Azerbaijan betters positions in revised Global Firepower 2021 rating
Iranian currency rates for October 28
Booster jab is important for long-term protection against COVID-19 - Azerbaijani doctor
National Iranian Oil Company discloses volume of gas to be extracted in country
SOCAR Ukraine sees 11% increase in fuel sales
Iran and Turkmenistan sign cooperation document
Iran's export to Kazakhstan increases
Azerbaijani boxers start performance in World Cup in Belgrade with victory
Azerbaijan repatriates 38 children from Iraqi orphanages – MFA
Turkey unveils number of ships docking at Antalya port
Iran's Energy Exchange announces products to be on sale on October 30
All news