Wednesday, October 12, 2016

Europe unlikely to buy Russian gas from Turkish stream, while Turkey might depend on Russian gas.


Europe unlikely to buy Russian gas from Turkish stream, while Turkey might depend on Russian gas. (Taz).

Likelihood of Russian gas supplies to Europe by Turkish stream pipeline is remote given the current state of play in EU- Russia relations, Constantine Levoyannis, head of the Greek Energy Forum's Brussels branch told Trend by email on Oct. 12.

This week an intergovernmental agreement on the Turkish Stream pipeline has been signed in Istanbul in the presence of both presidents. The agreement envisages the construction of two pipeline strings, each with a capacity of 15.75 billion cubic meters.

The first string will supply gas directly to Turkey, while the second is to be used to deliver gas to European countries through Turkey.

Levoyannis noted that the first stream supplying Turkish gas demand should come as no surprise.
“It is likely to happen. It makes commercial sense and the demand is there,” he said.

On the other hand, the expert noted that the likelihood of the second string to Europe materializing is remote, given the current state of play in EU Russia relations, adding that a top priority for the EU is the Southern Gas Corridor.

To me the second announcement bears more of a political message towards the EU,” Levoyannis said.


Within the negotiation on the Turkish Stream this week, the parties also agreed on a mechanism by which to provide a discount on Russian gas for Turkey.

The agreement on gas price discount is interesting news, Levoyannis said.
“This could have a significant macroeconomic impact - particularly on gas on gas competition,” he noted. Hmmm....I'm sure Iran won't be happy with this.

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