Gazprom sets up Stream Transport BV affiliate in Istanbul
By Kamila Aliyeva
Russia’s Gazprom CEO Alexei Miller has said that the company aims to finish construction of the Turkish Stream gas pipeline by the end of 2019, Russia’s TASS reported.
Gazprom plans to start laying Turkish Stream undersea pipes in the second half of this year, according to him.
The company has also set up a branch of South Stream Transport B.V. in Istanbul to coordinate work on the Turkish Stream gas pipeline project in Turkey, Miller told reporters.
“All conditions have therefore been created to start laying the marine part of the gas pipeline,” he added.
“The drilling of the first section of the micro tunnel has been completed on the Russian stretch. The second micro tunnel is 98.5 percent ready. With the decision of the Board of Directors, the Stream Transport BV affiliate has been set up in Istanbul for the implementation of the project and coordination of work in Turkey, which is a very important decision,” Miller said.
In late 2016, Russia and Turkey agreed to build a natural-gas pipeline under the Black Sea that could be up and running by the end of 2019, capitalizing on a recent improvement in relations between the two nations.
The Turkish Stream project envisages construction of a natural gas pipeline via the Black Sea to the European part of Turkey to be further extended to the border with Greece. The first line means to supply gas directly to the Turkish market and the other for the supply of gas by transit through Turkey to Europe.
These two offshore branches are planned to be built by December 2019, while the capacity of each section stands at 15.75 bcm of gas.
However, the opinions on the possibility of the implementation of the second branch are controversial due a to a number of uncertainties including the position of the European Commission, as well as doubts over the ability of the sides to reach consent over gas price.
The project, with an estimated total cost of $13 billion, was announced in December 2014 during Putin’s visit to Turkey as an alternative to the canceled South Stream gas pipeline through Bulgaria.
Being the second biggest consumer of Russian gas after Germany, Turkey currently imports around 30 billion cubic meters gas from Russia annually via two pipelines - the Blue Stream, which passes under the eastern Black Sea, and the Western Line through the Balkans.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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