REUTERS
Russian gas giant Gazprom with the announcement of the start of construction of Turkish Stream pipeline has for the first time launched a major export project without signing a respective binding agreement.
The Russian company said it believes that the delay in signing the agreement is only a political factor, and its signing will take place after the elections in Turkey in early June, according to Russian newspaper Kommersant.
The construction of the offshore section of Turkish Stream pipeline through the Black Sea will begin in June, a member of the Board of Gazprom Oleg Aksiutin said. He explained that a contract was signed with the Italian Saipem for construction of the first stretch of the pipeline.
In autumn of last year, two-laying vessels of Saipem (Castoro Sei and Saipem 7000) were contracted to carry out work regarding the offshore section of the predecessor of the Turkish Stream gas pipeline –South Stream, but after the project was abandoned in December 2014, the vessels were idle.
According to the publication’s estimates, the idle period cost about EUR 25 million per month for Gazprom. In early May, after the next round of negotiations between Gazprom chairman Alexei Miller and Turkish Energy Minister Taner Yildiz, Saipem was instructed to begin work on the project, while similar instructions were received by German Europipe (supplier of pipes for the offshore section), the company reported yesterday.
The Dutch subsidiary of Gazprom South Stream Transport BV has permission to lay about two-thirds of the offshore section, which is taking place in the territorial waters and exclusive economic zone of the Russian Federation (permits were obtained earlier for the South Stream project).
But Gazprom still has not received permission for laying pipes in the territorial waters of Turkey, nor has it permission for carrying out survey for a route. No binding agreements have been signed between Moscow and Ankara with regard to the Turkish Stream.
Thus, Gazprom for the first time begins to build an export pipeline at a stage when even an intergovernmental agreement has not been signed with the country of destination. The Russian monopoly is in a hurry to bring gas to Turkey and South-Eastern Europe before the EU can implement its counter-strategy for the supply of gas from Turkmenistan and Iran or restrict purchases of Russian gas through the mechanisms of the future energy union.
Under the worst-case scenario, such haste may lead to a situation in which Gazprom will have to suspend the laying of pipes in the sea while a Turkish decision is still pending, according to a source close to the Russian company.
However, Gazprom expects to reach an agreement with Turkey soon. According to a source familiar with the course of the negotiations, the delay is attributed to the parliamentary elections in Turkey that are to be held on June 7.
Neither the start of construction, nor even the conclusion of agreement on Turkish Stream are guarantees of success. The South Stream project, construction of which was launched three times, was eventually abandoned.