Russian gas monopoly Gazprom and Turkey’s government signed on May 26 a protocol on the onshore section of the transit string of the TurkStream or Turkish Stream gas pipeline.
According to Gazprom, the pipeline will deliver Russian gas to European consumers.
As a follow-up to the Protocol, Gazprom and Botas, the state-owned crude oil and natural gas pipelines and trading company in Turkey, signed an agreement detailing the terms and conditions of the construction work, the Russian gas company said in a press release, adding that with the documents signed, the parties will be able to start implementing the project.
TurkAkim Gaz Tasima AS, a joint venture that will be established on equal terms, will build the onshore section, Gazprom said.
In addition, Gazprom Export and Botas signed documents to settle out of court the ongoing arbitration dispute on the contract terms of Russian gas supplies to Turkey, Gazprom said, adding that the arbitration will be resolved shortly.
TurkStream is the project for a gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey’s border with neighbouring countries. The first string of TurkStream is intended for Turkish consumers, while the second string will deliver gas to southern and southeastern Europe. Each string will have the throughput capacity of 15.75 billion cubic metres of gas per year.
South Stream Transport BV, a wholly owned subsidiary of Gazprom, is responsible for the construction of the gas pipeline’s offshore section, which commenced on May 7, 2017.
Meanwhile, Gazprom CEO Alexey Miller and Edison CEO and EDF Group Executive Vice President Marc Benayoun discussed the implementation of the Cooperation Agreement and the status of the TurkStream and Poseidon projects at the St Petersburg International Economic Forum 2018 on May 25, Gazprom said.
On June 2, 2017, Gazprom, Edison, and DEPA inked the Cooperation Agreement aimed at establishing a southern route for Russian gas supplies from Russia to Europe, which would run across Turkey to Greece and further to Italy. The Poseidon project is a gas pipeline designed and authorized to connect the Greek and Italian gas transmission systems.