Azernews.Az

By Nigar Abbasova

Russia’s Energy Ministry and Gazprom, a Russian energy giant, have recently intensified work on preparations to implement the Turkish Stream gas pipeline project, RIA Novosti quoted Dmitry Khandoga, Head of Gazprom’s Directorate of International Gas Infrastructure Projects as saying.

He mentioned that an intergovernmental agreement with Turkey on the implementation of the project as well as determination of further steps is currently being prepared.

“We are currently intensifying work with our Turkish partners and Russia’s Energy Ministry on the project,” he noted.

Turkish Stream, which envisages Russian gas supplies to Turkey and further to Europe bypassing Ukraine, came under threat in late 2015 due to sharp deterioration of relations between Moscow and Ankara, when Turkey shot down a Russian Su-24 bomber with two pilots on board.

Recent improvement in Russian-Turkish relations gave a new stimulus for the resumption of processes on the implementation of the project.

The issue on realization of the project came to the foreground following the talks between the presidents of Russia and Turkey held in Saint Petersburg on August 9 when the sides took a decision on the development of the plan and creation of the working group on carrying out the project.

President Erdogan recently said that the Turkish Stream project will be implemented, adding that the country will take the necessary steps to ensure the supply of Russian gas to Europe through the pipeline.

The Turkish Stream project was announced by President Putin in December 2014 during a visit to Turkey.

Senior fellow at Atlantic Council's Dinu Patriciu Eurasia Center and Global Energy Center John Roberts earlier said that the project will be implemented underlining that Russia will at least build one or two branches of the Turkish Stream.

Roberts stressed that the construction of one or two branches will not allow Russia to fully abandon gas supplies via Ukraine, but at least it will give the opportunity to supply gas to Turkey directly, rather than via Ukraine. The expert said that the issue is more relevant given that the demand for gas in Turkey is growing steadily.

The expert, however mentioned that the project may face the same obstacles that it had in 2015 before the crisis in the Russia-Turkey relations namely, different positions of Russian Gazprom company and Turkish Botas company over gas price.

The sides reached an agreement on the discounting of 10.25 percent, provided that the project will be realized. However, the terms didn’t satisfy Turkey, and Botas appealed to arbitral court.

Meanwhile, judicial proceedings on the suit of Botas against Gazprom on gas prices will start in the second half of 2017, Gazprom reported. Main issue of legal proceedings is revision of gas prices, namely, discounting.

Initially, the Russian Gazprom company planned that the Turkish Stream pipeline would consist of four branches with capacity of 15.75 billion cubic meters per year each and 63 billion cubic meters of gas per year in general.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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