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MOSCOW, June 23. /TASS/. The negotiations between Gazprom and European partners on extending the Turkish Stream gas pipeline in Europe stipulate no exclusive terms while the Russian energy giant is receiving proposals on the routes of laying the pipe, Gazprom CEO Alexei Miller said on Friday.
"At present, there are proposals on the route of laying the pipe but there is no exclusiveness. The preliminary agreements with the interested companies have been signed and, therefore, the work will be continued," Miller said in a live broadcast of Rossiya-24 TV Channel.
The requirements for gas in Europe are increasing today and "the Turkish Stream will undoubtedly ensure the reliability of gas supplies to these countries," the Gazprom chief executive said.
On May 7, Gazprom launched the construction of the Turkish Stream gas pipeline’s offshore section near the Russian coast of the Black Sea. At the first stage, the vessel Audacia was laying the pipeline in its shallow water stretch. The vessel was also used to lay pipes from the shore through micro-tunnels.
Both the Pioneering Spirit and the Audacia belong to Allseas, the contractor of both stretches of the pipeline’s offshore section. The relevant contract between Allseas and Gazprom was signed in February this year.
Russia and Turkey signed an inter-governmental agreement on October 10, 2016 on the Turkish Stream project, which envisages the construction of a gas pipeline along the seabed of the Black Sea to Turkey’s European part and farther on to the border with Greece. Gazprom’s wholly-owned subsidiary South Stream Transport B.V. is responsible for the pipeline’s offshore section.
In December 2016, Gazprom signed a contract with Allseas Group on the construction of the first stretch of the Turkish Stream’s offshore section. In February this year, South Stream Transport B.V. concluded a contract with Allseas Group on the construction of the second stretch of the pipeline’s offshore section.
The first stretch will be intended for the Turkish market and the second will supply natural gas to countries of South and Southeast Europe. Each stretch will have a capacity of 15.75 billion cubic meters of natural gas annually. The pipeline is expected to annually pump 31.5 billion cubic meters of natural gas.
The project to build four stretches of the Turkish Stream gas pipeline was earlier estimated at 11.4 billion euros. Gazprom’s investments in the project will amount to 41.92 billion rubles ($703 million) in 2017.