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Turkish Stream gas pipeline

Russia, Turkey discuss protocol on terms of laying Turkish Stream overland section

All decisions on the sea section were made and construction is in progress, the Russian energy minister said

ANKARA, April 3. /TASS/. Russia and Turkey are discussing the protocol on laying the overland section of the Turkish Stream gas pipeline, Russian Energy Minister Alexander Novak told reporters.

"All decisions on the sea section were made and construction is in progress. As for the overland section, so far a protocol on laying conditions it is under discussion. That protocol is currently being discussed by commercial companies among themselves, and as you know, the implementation of this overland section will be done by a joint company," he said.

In September last year, Gazprom's Management Committee approved creating a joint project with Turkish Botas for the construction of the overland section of the Turkish Stream gas pipeline.

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Gazprom acquiring of 50 shares in the joint project company TurkAkim Gaz Tasima A.S. with a total value of 50,000 Turkish lira was also approved, which is 50% of the authorized capital of the joint company.

Gazprom said earlier that the joint venture is being created on a parity basis for the implementation of the Turkish section of the second line of Turkish Stream within the framework of the intergovernmental agreement between Russia and Turkey.

Gazprom estimates the cost of construction of the Turkish Stream gas pipeline at 7 bln euro. Deputy Chairman of Gazprom Management Committee Andrey Kruglov said earlier that, most likely, Turkish Stream will initially be financed from the budget of Gazprom, and then project bonds will be issued.

In January, Gazprom received permission from the authorities of Turkey to build the second line of the offshore section of the gas pipeline to the coast of Turkey. Investments of Gazprom in the construction of the Turkish Stream gas pipeline for 2018 are planned at the level of 182.4 bln rubles ($3.16 bln) against almost 93 bln rubles ($1.61 bln) in 2017

In May 2017, Gazprom began construction of the offshore section of the Turkish Stream near the Russian Black Sea coast. The project involved construction of the gas pipeline through the Black Sea to the European part of Turkey and further to the border with Greece. The length of the sea part of the pipe is expected at around 930 km, the overland part on the Turkish territory - 180 km.

The first line will be intended for the Turkish market, the second - for gas supply to the countries of South and South-Eastern Europe. The capacity of each line reaches 15.75 bln cubic meters of gas per year.

The first gas supplies are planned for the end of 2019. Construction of a sea section of the gas pipeline is carried out by South Stream Transport B.V. (100% subsidiary of Gazprom).

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