Work progressing on a scaled-back version of the broader South Stream network to Europe.
By Daniel J. Graeber
Russian energy company Gazprom offers loan to help build a
natural gas pipeline under the Black Sea to Turkey. File Photo by Kevin
Dietsch/UPI
| License Photo
Russian energy company Gazprom said it
approved financing of up to $320 million to help build a natural gas
pipeline planned through Turkey.
Russian news agency Tass
reported
that Gazprom approved a 3.5-year loan to aid the construction of the
planned Turkish Stream pipeline. Funds target construction, purchase
contracts and general administrative expenses.
Gazprom is looking at Turkey as an alternative
to Ukraine, through which most of the Russian gas pipelines run.
Geopolitical issues associated with Ukraine make legacy routes risky and
Turkey's geographic position makes it desirable as a bridge to
transport energy resources from Central Asian suppliers to the European
market
Turkish Stream, which mirrors the route for
the now-abandoned South Stream project, would run under the Black Sea to
Turkey and then to the European market. South Stream was scrapped
because of concerns about Russian business practices expressed by some
European countries.
Turkey is also slated to host a string of
pipelines carrying natural gas from Azerbaijan as part of a European
diversification scheme.
Gazprom's announcement comes just days after
French energy company ENGIE said it was building its European footprint
in the liquefied natural gas market with the opening of
a new terminal in Turkey.
The French company said it was tasked with
delivering a fast-track floating regasification unit so that product can
be delivered to the Turkish market in gaseous form.
According to the Turkish government, the
country is second only to China when it comes to demand for natural gas.
The country is dependent on imports to meet its demand as 25 percent of
its natural gas needs are met by domestic resources.
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