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Gazprom to invest over $595 mln into Turkish Stream project in 2016

MOSCOW, November 7. /TASS/. Russia’s top gas producer Gazprom is planning to spend more than $595 mln on the expansion of the gas pipeline system to deliver gas to the Turkish Stream natural gas pipeline and implementation of the project itself in 2016, according to the documents released on Monday.

The company’s reviewed investment program for this year stipulates $228 mln to be earmarked for the expansion of the gas pipeline system to provide gas deliveries to the Turkish Stream, and $368 mln - for the implementation of the Turkish Stream project.

In October, the company’s board of directors approved the adjusted investment program with the total investment volume of $13.3 bln, a $172 mln increase compared with the investment program approved in December 2015.

The Russian authorities announced the launch of the Turkish Stream pipeline in December 2014 as an alternative to the South Stream gas pipeline project. It was planned that the offshore section of the Turkish Stream gas pipeline would comprise four stretches with a capacity of 15.75 billion cubic meters each. However, the negotiations on the project were subsequently suspended, particularly due to the crisis in bilateral relations. After talks held between Turkish President Tayyip Erdogan and Russian President Vladimir Putin in St. Petersburg in August 2016, a decision was made to resume works under the Turkish Stream gas pipeline project, set up a working group and prepare a roadmap.

The Turkish Stream project envisages the construction of a gas pipeline across the Black Sea to the European part of Turkey and farther to the border with Greece. The pipeline’s offshore section is expected to equal about 910 km and its overland segment on the Turkish territory 180 km.

The project is estimated at 11.4 billion euros. Gas deliveries via the first stretch of the gas pipeline are designed wholly to meet the requirements of the growing Turkish market.