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Interfax.com  |  Interfax news  |  Gazprom agrees on 180-km land section of Turkish...


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February 08, 2015 16:34

Gazprom agrees on 180-km land section of Turkish Stream gas pipeline between Kiyikoy, Epsila

MOSCOW. Feb 8 (Interfax) - Gazprom (MOEX: GAZP) chief Alexei Miller and Turkish Minister of Energy and Natural Resources Taner Yildiz agreed on the Turkish Stream itinerary across the republic last Saturday.

When asked about the main outcomes of his visit, Miller said: "The land section of the Turkish Stream natural gas pipeline has been determined and now appears on the map for subsequent survey and design. And that is the main thing!"

The parties have decided on key reference points of the itinerary and technical solutions for the Turkish part of the pipeline, a Gazprom spokesperson said. In particular, they have decided that the land section will start at Kiyikoy, deliver gas to Turkish consumers at Lule Burgas and end at the Turkish-Greek area of Epsila. The gas pipeline will be 180 kilometers long.

Miller and Yildiz made a helicopter over the planned route of the land section of the pipeline.

The idea of the Turkish Stream gas pipeline promptly replaced the South Stream which got stuck in European red tape. Even the 660-kilometer sea route of the Turkish Stream will replicate that of the South Stream (which means, no time and money spent on a new sea survey) before being diverted towards the European coast of Turkey.

"Very soon we are expecting to obtain permission to conduct design and survey at the new Turkish sea part of the gas pipeline," Gazprom wrote in a Saturday press release.

Last December Gazprom bought 50% of shares in 50% in South Stream Transport B.V. from its European partners, Eni, Wintershall and EDF. Several industry sources told Interfax that the deal set Gazprom back about $1 billion. Gazprom was under no obligation to buy the shareholdings since its partners were sharing the project risks.

One source told Interfax that Gazprom was critically keen on keeping its contract with South Stream Transport contract to have the pipeline built by Italy's Saipem, especially after the EU imposed sanctions on the Russian oil and gas industry. South Stream Transport B.V. (registered in Amsterdam) obtained Holland's permission for pipeline construction. The Italian authorities allowed Saipem to build the pipeline across the Black Sea. Pipes for building the pipeline had been made, delivered and stored in Varna, Bulgaria.

According to data from vessel monitoring systems, Saipem's pipe-building fleet mobilized for building the South Stream is still at the port of Burgas. Gazprom continues paying hundreds of thousands of euro per day for Saipem's moorage, waiting for the moment when it can start building the Turkish Stream.

kk

(Our editorial staff can be reached at eng.editors@interfax.ru)

/Interfax/
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