• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 3 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 14 hours Will Uncle Sam Step Up and Cut Production
  • 2 days Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 20 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 16 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 3 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 12 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days I think I might be wrong about a 2020 shakeout
  • 2 days Kremlin Says WTO's Existence Would Be In Doubt If the U.S., Others Left
  • 52 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 2 days Why Oil is Falling (including conspiracy theories and other fun stuff)
The Revival Of A $53 Billion Megaproject

The Revival Of A $53 Billion Megaproject

The Iraqi government is still…

Gazprom To Begin Turkish Stream Construction In Next Few Days

Pipeline

Russian energy giant Gazprom will begin construction on the Black Sea portion of the Turkish Stream natural gas pipeline in a few days, according to CEO Alexei Miller, who spoke to reporters on Thursday.

"We have finished all preparatory and mobilization works [on the Turkish Stream project]. I report to you that we are ready to start the construction of the sea stretch of the Turkish Stream gas pipeline in a few days," Miller said after a meeting with Russian President Vladimir Putin.

In anticipation of future competition, changing market dynamics in Europe, the limited success of Gazprom’s pivoting to China, and the phasing out of long-term contracts, Gazprom has followed through with a strategy of doubling down on Europe and securing its future market share by launching Nord Stream II and Turkish Stream. In doing so, the Russian gas giant is enacting a “pincer” strategy aimed at eliminating the need for the gas to transit through Ukraine. This would remove the transit risk based on political quarrels between Russia and Ukraine.

Russia’s ambition to export gas to China seems to be a pipe dream for the moment. Although having signed a largely political agreement, Beijing has not committed to any concrete terms as it pressures Russia on accepting a much lower-than-requested export price.

Related: Are Gasoline Prices About To Crash? Glut Moves Downstream

Russia and Turkey signed the agreement authorizing the pipeline last October. Previously, Miller had said construction would begin later this year, but the timeline has moved up since a couple of weeks ago.

"In the second half of this year, we will start the laying of the gas pipeline and we plan to complete the construction of two lines of the Turkish Stream by the end of 2019,” he said in late April. “The drilling of the first section of the micro tunnel has been completed on the Russian part, the second micro tunnel is ready for 98.5 percent.”

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Pampita on May 05 2017 said:
    Bob, there is almost no gas in Azerbaidjan, it's a pipedream. Oil yes, gas no.
  • Bob on May 05 2017 said:
    In my oppinion Gazprom in it's quest to end the quarrels with Ukraine is missing one vital point: Italy's refferendum lost and south Italy's locals aren't thrilled at the idea of any gas pipelines thru their gardens and sea resorts. The gas from Azerbaijan must go somewhere else and Gazprom is leaving behind valuable infrastructure conecting Turkey and Ukraine.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play