Turkey in no rush with Turkish Stream gas pipeline construction

The Turkish authorities are concerned about their country’s significant dependence on Russian energy, and therefore Russia's plans for a new gas pipeline to south-eastern Europe will unlikely be implemented as quickly as Moscow might like.

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In December, Russia announced that it had abandoned the South Stream project, estimated to be worth $40 billion, which would have passed under the Black Sea to Bulgaria and carried up to 63 billion cubic metres (bcm) of gas annually to Europe, Ukrainian newspaper Ukrainska Pravda has reported, with reference to Reuters.

Instead, Russian gas exporter Gazprom said in January that it planned to build a pipeline with the same capacity to as-yet unbuilt gas hub on the Turkish-Greek border by the end of 2016.

However, officials in Ankara say that the time frame for the project, which is informally referred to as "the Turkish stream", is unrealistic.

"The issue is not Turkish Stream alone, this is a whole package for Turkey's energy needs. We need to be a little bit patient," Energy Minister Taner Yildiz said.

Turkey is already heavily dependent on Russian natural gas. Last year it purchased 27.33 million cubic meters, equivalent to more than half of the country's gas imports.

The Russian company "Rosatom" is also building Turkey's first nuclear power plant.

"Russia is very keen but it's very likely that [Turkish Stream] will be delayed until at least 2017," one industry manager said, highlighting the long procedure of granting environmental permits, especially ahead of the general elections in June.

Another official said that negotiations over the price of Russian gas imports are also an important factor. At the end of February, Turkey managed to negotiate a 10.25% discount, but Ankara wants more.

By 2017, the demand for gas in Turkey is expected to outstrip current contracted import volumes. Supplies from northern Iraq will begin no earlier than 2018, leaving Ankara with few options.

A Western diplomat in Ankara said that the debates about the "Turkish Stream" are also the subject of contention between Brussels and Moscow for maintaining influence over Turkey.

"People are realizing more and more that Russia is a lost cause and that we need to find more allies to the east and south. Turkey is number one,” the diplomat said.

"Russia is drawing Turkey into its orbit, and if it's not stopped now, then it may be too late."

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