Russia's Gazprom reportedly hurries the second stage of Turkish Stream unilaterally

Russia's Gazprom reportedly hurries the second stage of Turkish Stream unilaterally
/ wikicommons
By bne IntelliNews July 19, 2017

Russia has accelerated the construction of the Turkish Stream pipeline that will supply Turkey with Russian gas and by-pass Ukraine in the process before the final deal is approved with Ankara.

Russia's pipeline gas exports monopoly giant Gazprom has started the construction of the second stage of Turkish Stream pipeline unilaterally and ahead of schedule, Vedomosti daily reported on July 19 citing unnamed federal officials and contractors.

Reportedly the pipe laying division Audacia of Swiss Allseas has already laid about 20-25km of the pipeline on the bed of the Black Sea. It is possible that Gazprom forces the construction of the pipeline under pressure from possible extension of the US sanctions.

Marine traffic coordinates on Audacia's vessels checked by Vedomosti seem to confirm that they are moving on the announced path of Turkish Stream pipeline, supported by a circulating fleet of cargo ships supposedly supplying the building materials.

At the same time the daily reminds that there has been no agreement yet with the Turkish side on the points of entry and inland infrastructure for the second stage of the pipeline. 

Earlier in July Gazprom warned investors that its major projects such as Nord Stream 2 or Turkish Stream pipelines could be "delayed or prevented from being finished" by the new sanctions on Russia proposed by the US Senators.

Western sanctions could directly sanction investment in "exports pipelines" of over $1mn, as well as curbs supplies of technology, equipment and services for such projects.

Analysts surveyed by Vedomosti on July 11 specifically warned that the withdrawal of US contractor Allseas from the construction of the Turkish Stream pipeline under the Black Sea could be the most immediate consequence.

While the approved first stage of Turkish Stream is planned to deliver gas for domestic Turkish consumption, the second stage is seen bypassing Ukraine in bringing Russian gas across the Black Sea and Turkey to Europe.The pipeline project is 50:50 owned by Gazprom and Turkish state oil and gas company Botas.

Most recently Budapest has signed a deal with Gazprom to link Hungary with Turkish Stream pipeline by end-2019.

The deal - which could mean deliveries of up to 8mn cubic metres (cbm) a year of gas, a figure close to Hungarian consumption - was struck on July 5, a day before President Donald Trump was due in Poland, where he was expected to promote fast-growing American LNG exports to Central and Eastern European leaders.

The decision seems to be part of a wider set of actions designed to put more pressure on the government in Ukraine to do a deal over the disputed Donbas region in the country’s east. This week, in what might be unrelated news, the separatist leaders announced they would set up a new republic called Maloyarossia that encompasses most of the Ukraine, minus the Crimea.

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