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Wednesday, September 7, 2016

First Permits to be Received by Gazprom for Turkish Stream Pipeline

Gazprom receives first permits for Turkish Stream pipeline

September 07, 15:50 UTC+3 

According to the company's CEO, the move of the Turkish side reflects the Turkish government's interest in the project and indicates the transition to its implementation

© ITAR-TASS/Ruslan Shamukov

MOSCOW, September 7. /TASS/. Gazprom has received through diplomatic channels first permits from the authorities of Turkey for the implementation of the Turkish Stream after it was decided to resume the project this year, Russian gas holding said in a statement.

As a result of last week's negotiations between Gazprom CEO Alexei Miller and Turkish Minister of Energy and Natural Resources Berat Albayrak the parties agreed to complete all the necessary preparations for the start of the project as soon as possible.

"Reception of first permits is positive news for Gazprom. This move of the Turkish side reflects the Turkish government's interest in the project and indicates the transition to its implementation," Miller said as quoted by the statement.

Earlier, Energy Minister Alexander Novak said that signing a draft intergovernmental agreement on the project is scheduled for October.

He also said that construction of the Turkish Stream’s first line and explorations in territorial waters of Turkey are expected to start the same months, after all required permits are obtained.

Novak added the parties had agreed to set up a working group to prepare the draft intergovernmental agreement on the construction of at least one line along the bottom of the Black Sea to Turkey.

Russia unveiled plans to build the Turkish Stream as a replacement for the South Stream pipeline in December 2014.

It was planned that the marine section of the Turkish Stream will consist of four lines, each with the capacity of 15.75 billion cubic meters. The pipeline was to stretch by 660 km along the old corridor of the South Stream and by 250 km - in the new corridor in the direction of the European part of Turkey. The project’s total cost is estimated at 11.4 bln euros, the cost of the first line is seem at 4.3 bln euros.

It is expected that the gas supplied via the first line will be entirely intended to meet the growing needs of the Turkish market.

On December 1, 2014, Gazprom and Turkey’s Botas signed a memorandum of understanding on construction of the Turkish Stream with the capacity of 63 billion cubic meters of gas per year. In 2015, Russia’s Energy Ministry Alexander Novak said that at the first stage of construction would imply laying two lines of the pipeline.



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