Nord Stream-2 and Turkish Stream unlikely to co-exist

Baku, Azerbaijan, Aug.5

By Aygun Badalova - Trend:

The first string of Turkish Stream gas pipeline, which is meant to take the Russian gas to Turkey across the Black Sea, might go ahead if political rapprochement between Turkey and Russia continues and improves, and if the project does not add any financial burden for Ankara, Sohbet Karbuz, Director of Hydrocarbons, France, Mediterranean Energy Observatory (OME) believes.

“Afterall, it corresponds to more or less the existing amount of gas delivered to Turkey through Ukraine,” Karbuz told Trend August 5.

Initially, Russian "Gazprom" planned to build four lines of the Turkish Stream with total capacity of 63 billion cubic meters of gas per year. The capacity of each line was expected to reach 15.75 billion cubic meters per year. Later, it was decided to build fewer lines.

In late 2015 the Turkish Stream project was frozen due to sharp deterioration of relations between Moscow and Ankara when Turkey shot down a Russian Su-24 bomber with two pilots on board. On June 27, Turkey’s President Recep Tayyip Erdogan sent a letter of condolences to Putin over the death of Russian Su-24 pilot and expressed regret over the incident. After that, the two countries’ relations began to improve.

Last week Russia and Turkey announced the resumption of negotiations on the Turkish Stream this week and the intention to create a working group on this project.

The implementation of Turkish Stream’s second string would be very tricky, Karbuz believes.

“Will it end up in Turkey and then onward to Turkey, or will it land in Bulgaria then go to Greece and onward to Italy? The EU politics will pay a major role in the second string, as we are witnessing in the debate on Nord Stream-2, but the first string, if goes ahead, is not the EU’s business,” he said.

“The EU should first put its own house in order vis-à-vis the Nord Stream-2 before telling Turkey how it should do,” the expert added.

Karbuz also noted that Russia wants to bypass Ukraine as strongly as the EU wants to cut dependency on Russian gas.

“But at the end the whole issue is a foreign policy matter. Nord Stream-2 and Turkish Stream (Greek Stream or South European gas pipeline) both would reduce gas transit through Ukraine. And that transit through Ukraine is a strategic commitment of the EU,” Karbuz said.

The problem is that how long the EU will subsidize Ukraine, he believes.

The expert mentioned that the capacity Nord Stream-2 at 55 billion cubic meters per year plus two string Turkish Stream with a total capacity of 31 billion cubic meters per year would in total make 86 billion cubic meters per year.

“So whichever pipeline with whatever capacity is constructed, it will have a direct impact on the gas transit volumes through Ukraine”, Karbuz said, noted that that Russian gas transit through Ukraine in 2015 was 67 billion cubic meters.

Nord Stream-2 and Turkish Stream are unlikely to co-exist in the current political and commercial environment, Karbuz believes.

“For the Turkish Stream, on the one hand much will depend on how the issue of Gazprom’s existing contracts with Ukraine (which expires at the end of 2019) will be handled, and on the other hand how the delivery point clauses in the Gazprom contracts with buyers beyond Ukraine will be renegotiated,” the expert said.

The Nord Stream 2 project includes construction of two lines of the offshore gas pipeline with a total capacity of 55 billion cubic meters of gas a year from Russia to Germany under the Baltic Sea, in addition to the existing two lines.

The project is to be implemented by the engineering company New European Pipeline AG. The stakes of partners in Nord Stream 2 AG will be distributed as follows: Gazprom will hold 50 percent, while BASF, E.ON, Engie, OMV and Shell will own 10 percent each.

Earlier Polish regulator issued a formal statement of objections to the deal regarding the construction of the Nord-Steram-2 gas pipeline.

Saipem’s capex down, net financial debt up in 2020
Saipem’s capex down, net financial debt up in 2020
Saipem sees decrease in revenues due to slowdown of projects
Saipem sees decrease in revenues due to slowdown of projects
Barclays lifts 2021 oil price outlook on tighter U.S. supply view
Barclays lifts 2021 oil price outlook on tighter U.S. supply view
Loading Bars
Latest
Extraction from Iran's South Pars gas field exceeds plan
Kazakhstan's KAZ Minerals reports increase in revenues
TOP-5 trading partners of Azerbaijan in Jan. 2021
Georgia to extend grace period for auto importers
Saipem’s capex down, net financial debt up in 2020
Kazakh national atomic company's subsidiary opens tender to repair vehicles
Saipem sees decrease in revenues due to slowdown of projects
Barclays lifts 2021 oil price outlook on tighter U.S. supply view
Azerbaijani MFA comments on statements by Luxembourg's FM
Khojaly genocide - heaviest crime of last century, says Turkish Parliament's chairman
Turkey records more revenue from Jan.2021 car exports to France
Uzbekistan eyes purchasing helicopters from Airbus
Turkey always next to Azerbaijan - speaker of Turkish Parliament
Volumes of agricultural products export in Turkmenistan’s Lebap region revealed
Annual profit margin of Georgian banks increases
Azerbaijan's export of plastics over Jan. 2021 shows substantial growth
Iranian parliament shares grief of relatives of victims of Khojaly tragedy
Upgrading of Internet equipment in Azerbaijan's Khachmaz district continues - Ministry
Uzbekistan to fund introduction of drip irrigation technology for cotton growing
Europe’s gas trade to decline to 450 bcm by 2050
Kazakh gas producing company opens tender to buy spares for wells repair
Turkmenistan to send cargo flight to Turkey
Kazakhstan boosts mutual trade with Germany amid COVID-19
Ukrainian companies eye creating logistics center in Turkmenistan’s seaport
Chip shortage leads Japan automakers to post 4.5% slump in January global output
Georgia sees decrease in COVID-19 cases
Direct impacts of COVID-19 on gas market to be evident through to 2030
Baku Higher Oil School, Stockholm University to start training cybersecurity specialists
Aston Martin expects better 2021 sales after deep losses
Kazakhstan's expenses for importing Turkey-made steel grow in Jan.2021
IGB can be extended to eastern, northeastern Europe
Iranian president inaugurates Abyek-Varamin Highway
Azerbaijan shares footage from Gubadly district's Yusifbayli village (VIDEO)
Indian citizen Kaushik Barua conferred with Royal Order in Cambodia
India set to manufacture containers to boost exports
GUAM commemorates Azerbaijan's Khojaly Genocide
Uzbekistan, Kazakhstan preparing for demarcation of state borders
World's largest cricket stadium renamed as Narendra Modi Stadium
Ukraine receives first Covid-19 vaccine doses
UAE establishes executive office to combat money laundering, terror financing
Reconstruction Work Of 66th School Under Indian Aid Begins In Nepal's Dakshinkali
Senior Officials Of India, France, Australia Discuss Further Cooperation In Indo-Pacific
Gold price in Azerbaijan decreases
Uzbekistan reveals COVID-19 data for Feb. 25
ERIELL int’l oilfield services group working on increasing hydrocarbon production in Uzbekistan
Georgian Crystal's refinancing plan carries elevated execution risk
Turkey issues data on ships received at Kocaeli port during Jan. 2021
Azerbaijani oil prices continue to grow
Azerbaijani currency rates for Feb. 25
Iran's Energy Exchange announces products to be on sale on February 27
Pakistan announces opening of flights to Azerbaijan
Iran's Minister of Tourism explains health protocols in coming Nowruz trips
N. Macedonia’s ICT sector may be attractive for Azerbaijani investors – minister
Another Italian municipality officially condemns Khojaly genocide against Azerbaijani civilians
Iran's Rouhani asks US to pave way for talks
Iran cooperates with Germany, Afghanistan to develop renewable energy sector
Iranian gov't, Expediency Council hold another meeting on FATF bills
N. Macedonia names energy, tourism most productive sectors for co-op with Azerbaijan
N.Macedonia, Azerbaijan negotiating on trade agreement
Oil prices hit 13-month highs on tighter supplies, Fed assurance on low rates
Iran and US negotiate only within JCPOA framework
Australian media reforms pass parliament after last-ditch changes
Decrease in bank lending observed in Baku and Azerbaijani districts
Appeals to consulting organizations in Azerbaijan growing dynamically - Azecoconsulting
Azerbaijan Industrial Corporation aiming to restructure portfolio
China becomes Uzbekistan’s main foreign trade partner
Azerbaijan's Central Bank publishes latest data on population's bank deposits
Azerbaijan discloses share of household loans in total lending
Azerbaijani State Migration Service opens tender to buy air transport services
Kazakhstan to reduce VAT for new manufacturing companies
New Turkish ambassadors to Washington, Tokyo officially appointed
Municipal transport to operate on weekends in Georgia
Tariffs on Eurasia trades to go zero: Iranian Official
Number of COVID-19 cases in Kazakhstan surpasses 210,000
Biden to press for $37 billion to boost chip manufacturing amid shortfall
Participation of Azerbaijani SMEs in public procurement to be encouraged
U.S. report on Khashoggi death expected to single out Saudi crown prince
Egypt plans to order 10 mln Sputnik V doses from Russia
Kazakhstan, Poland trade decreases amid COVID-19
Germany grants special approval for first COVID-19 self-test kits
Ford CEO calls on U.S. government to support EV batteries, charging
Swiss logistics giant to partner with Chinese company in vaccine storage and distribution
Japan's cabinet green-lights bill to ratify RCEP trade deal
Kazakhstan increases imports of Sweden-made goods
Kazakh Karachaganak Petroleum Operating paying particular focus to "green" technologies
Kazakhstan's Kcell mobile telecom services provider to de-list its GDRs
Azerbaijan - leader among neighboring countries for index of sustainable development goals
Israel's hi-tech services exports up 19 pct in 2020
Conditions for Int’l cooperation changing - Rouhani
Kazakh airlines eye boosting jet fuel imports
Uzbekistan notes decrease in mining production
COVID-19 greatly affects cargo transportation by vehicles in Azerbaijan's transportation sector
Head of Georgian Governmental Administration quits
Turkey registers more than 9 500 new coronavirus cases
Johnson & Johnson's one-dose vaccine closes in on U.S. approval
Pashinyan shows anti-Russia stance, denigrates 'Iskander' missile fired on Azerbaijan
Azerbaijani FM, European commissioner for Neighborhood and Enlargement discuss situation in region
Azerbaijani FM meets Ukrainian deputy FM (PHOTO)
Visitors show great interest in Azerbaijani products at Gulfood 2021 exhibition (PHOTO)
Azerbaijan discloses amount of investments in economy of Turkic-speaking states
All news