Russia's Gazprom Plans to Move Natural Gas to Europe via Turkey

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Researched by Industrial Info Resources (Sugar Land, Texas)--OAO Gazprom (PINK:OGAZPY) (Moscow, Russia), Russia's state-owned natural gas exporter, plans to supply natural gas to Europe via a proposed pipeline through Turkey, bypassing Ukraine, according to a news article by Russian news agency Interfax. Gazprom Chief Executive Officer Alexei Miller was quoted by Interfax as saying the only route the company would use in the future is the proposed Turkish Stream pipeline. Russia currently sends its natural gas to Europe via Ukraine.

Miller said European buyers that they have little time to prepare and develop new infrastructure to move gas from the Turkey-Greece border, according to Interfax.

Turkey and Gazprom are looking at building a large gas pipeline through Turkey as an alternative to the cancelled South Stream project, which would have transported Russian gas underneath the Black Sea to Bulgaria, also bypassing Ukraine.

Russian President Vladimir Putin cancelled the South Stream project in December, blaming Bulgarian reluctance as well as pressure by the European Union (EU). For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.

Gazprom wants to discontinue the Ukrainian gas transit by 2019. The existing transit contract will expire in 2018. Gazprom will have to revise contracts with European buyers. The delivery point would be changed to the Turkey-Greece border from the Ukrainian border.

Turkey's Intentions
Separately, Turkish Prime Minister Ahmet Davutoglu said that Turkey wants "to get as much energy as possible" from a new gas pipeline from Russia, and not position itself as an alternative transit country to Ukraine. Davutoglu made this statement in an official trip to Brussels, one day after Russia's Gazprom reaffirmed its intention to transport gas through Turkey instead of Ukraine.

The European Commission said it would analyze the economic viability and legal feasibility of the Gazprom plan.

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