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Turkish Stream to allow Turkey to become gas hub

Oil&Gas Materials 10 January 2020 18:01 (UTC +04:00)
Turkish Stream to allow Turkey to become gas hub

BAKU, Azerbaijan, Jan. 10

By Anastasia Savchenko - Trend:

The Turkish Stream gas pipeline project will allow Turkey to become a real gas hub, energy analyst at the Energy Center of the Moscow-based Skolkovo School of Management Sergey Kapitonov told Trend.

Kapitonov said that Turkey has access to gas from Azerbaijan, Iran, two transit-free gas pipelines from Russia, as well as to liquefied natural gas (LNG) from world markets.

“The role of the gas hub provides Turkey with tangible financial benefits both from favorable gas prices and from the receipt of transit revenues,” the expert added.

The analyst noted that strategically, the gas pipeline is definitely profitable, and is called upon to replace supplies to Turkey via the Trans-Balkan Pipeline (through Ukraine, Moldova, Romania and Bulgaria).

“According to European Network of Transmission System Operators for Gas (ENTSOG), in 2019, about 4.5 billion cubic meters of gas were delivered to Turkey via the Trans-Balkan Pipeline, which is more than half less that in 2018 (11 billion cubic meters),” Kapitonov reminded.

The expert also noted that thanks to this project, Russia will get a transit-free gas route to the Turkish market.

“Hungary demonstrates the most positive dynamics in the growth of Russian gas purchases,” Kapitonov added. “After the completion of the European continuation of the Turkish Stream and due to the offer of more favorable conditions for Turkey, Gazprom can count on the projected level of filling the new gas pipeline.”

In conclusion, the expert said that in general, the Turkish Stream project is strategically important both for Russia and Turkey in terms of forming strategic alliance between Moscow and Ankara both in the energy sector and in strategic issues of security and international relations.

On Jan. 8, the ceremony of the official launch of the Turkish Stream gas pipeline was held.

Construction work on the Turkish Stream project began in 2017. The Turkish Stream runs along the bottom of the Black Sea to the European part of Turkey and further to the border with Greece.

The first branch of the pipeline is intended for supplying the Turkish market, the second - for deliveries to the countries of Southern and Southeast Europe. The throughput of each branch is 15.7 billion cubic meters.

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