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Gazprom delays Turkish Stream works

8 July 2015
Oil&Gas
energynomics

Gazprom has told pipeline makers to suspend deliveries of pipes for expanding Russia’s network to be connected to the proposed Turkish Stream project, an industry source said, quoted by Reuters.

The delay is another snag in Moscow’s plans to build a gas pipeline via the Black Sea to Turkey, and on to south Europe in order to bypass Ukraine. “We’ve got a note (from Gazprom) to suspend deliveries,” the source in the pipeline making industry told Reuters.

Russia’s RBC daily reported on Monday that Gazprom had postponed the network expansion, citing an internal letter. It valued possible losses of Gazprom’s contractors at 120 billion rubles (2.1 billion dollars) if it abandons the expansion plans.

Turkish Stream is a gas pipelines network destined to provide gas for center and southern Russian regions. The network is 2.500 kilometers long, with a total capacity exceeding 63 billion cubic meters a year. Russian companies Severstal, Chelpipe, OMK and TMK are the main pipe suppliers for Turkish Stream.

According to Gazprom plans, the future gas network will have a subsea section under the Black Sea to reach the border of Turkey with Greece, possibly to transport gas for southern Europeans. According to the preliminary agreement between Gazprom and the Turkish energy company Botas, 43 billion cubic meters of gas per year are to be delivered for Turkey.

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