Growing Dependent On Russia: The Gas Routes In Europe - FORBES

Dec 12, 2018, 12:05pm
Annalisa Girardi

This year Italy has become the second largest buyer of Russian natural gas, outdoing Turkey. Rome and Moscow historically have had close commercial ties within the energy sector, being Eni, an oil and gas Italian company and one of the largest multinationals in the sector, the first Western business to become a commercial partner to the Kremlin. This year Italy has become Russia’s second market, buying 18,3 billion cubic meters gas, against the 17,9 billion cubic meters acquired by Ankara. According to Bloomberg, Germany remains far in its first place, with 42,7 billion cubic meters gas purchased from Siberian gas fields.

Russian gas is a precious resource for Italy since it provides more than one-third of its total domestic demand. Natural gas originated in Russia reaches Italy mainly through the Trans Austria Gas (TAG) pipeline, a 380 kilometers duct hold at 89% by Eni. At this moment, 40% of national requirements are met by Gazprom, the Russian business that is also a major oil and gas companies worldwide, as well as being state-owned at 50%. The rest of Italian energy needs are mainly covered at 25% by Algeria and at 6% by Libya, while the country imports from Qatar the majority of liquefied natural gas which is later processed at the regasification plants.

Washington backs Cyprus's EEZ rights - KATHIMERINI

FRIDAY JULY 27, 2018, 21:55

US Assistant Secretary of State for Energy Resources Francis Fannon expressed Washington’s support Friday for Cyprus’s right to exploit the natural resources within its own exclusive economic zone (EEZ).

Turkey has warned that it will not allow Cyprus to drill for and exploit gas reserves in its EEZ unless Turkish Cypriots in the island’s Turkish-occupied north are included in the project.

Fannon met in Athens with Energy Minister Giorgos Stathakis and government officials and conveyed Washington’s plaudits for Greece’s efforts to become an energy transit hub with its participation in the South Stream and the Gas Interconnector Greece-Bulgaria (IGB) pipelines.

New Players Enter The European Gas Game - OIL PRICE

Jun 10, 2018, 12:00 PM CDT
Vanand Meliksetian

The expansion of the European Union in 2004 and 2007 indirectly led to several crises at a level not seen since the oil embargo of 1973. The accession of several former Warschau pact countries introduced an extra dimension to European politics: Russia. Due to historical reasons some of these countries have a high dependency concerning hydrocarbons on their large eastern neighbour. Several serious disputes concerning supply, pricing, and debt between Moscow and Kiev from 2005 until 2009 led to disruptions in supply to EU member states. These conflicts highlighted the need for reduced dependency on Russia.

During this period the search for alternative sources was already on its way, but the shutdown of gas supplies as a consequence of these disputes accelerated the process. The completion of two LNG liquefication plants in Poland and Lithuania has decreased the dependency of this region on Russia. The south-eastern flank of the EU, however, is in a direr state. In order to alleviate dependency, the European Commission obstructed construction of the South Stream pipeline from Russia through the Black Sea to Bulgaria.

Gazprom starts TurkStream 2 natural gas pipeline preparations - PLATTS

London (Platts)--20 Jul 2017 1106 am EDT/1506 GMT

Stuart Elliott, Rosemary Griffin, Siobhan Hall

Russia's Gazprom has begun carrying out preparations for the laying of the second string of the two-line TurkStream natural gas pipeline to Turkey, a company spokesman said Wednesday, but he denied a report in a Russian newspaper that pipe-laying in the Black Sea for the second string had started.

TurkStream -- whose two lines will each have a capacity of 15.75 Bcm/year -- is designed to supply the Turkish domestic market and markets in southeast Europe, bypassing the traditional transit route via Ukraine.

Gazprom may exit domestic Turkish natural gas market - RUSSIA TODAY

Pioneering Spirit, the vessel to construct the offshore part of the Turkish
Stream gas pipeline passes Istanbul on May 31, on the way to Russia 

28 Jun, 2017 09:43

Russian gas monopoly Gazprom is expected to leave the Turkish market and will concentrate on gas sales to Turkey, reports business daily Kommersant.

Gazprombank is completing the withdrawal from Promak, a company which owns a 60 percent stake in the two importers of Russian gas to Turkey - Enerco and Avrasya, the newspaper writes.

Gazprom Deputy Chairman Aleksandr Medvedev said the company plans to sell another Turkish asset - Bosphorus Gaz.

According to Medvedev, the Turkish market is "unpredictable" and loses appeal due to the weakening of the lira and regulated tariffs. Kommersant’s sources in the industry said Bosphorus lost about €100 million in 2016.

Bulgaria May Seek More Time To Reply To Gazprom Concessions - RIGZONE / REUTERS

Monday, April 24, 2017

Tsvetelia Tsolova; editing by Mark Potter

SOFIA, April 24 (Reuters) - Bulgaria may need more time to respond to concessions proposed by Russian gas giant Gazprom in an EU antitrust case, its energy minister said on Monday, adding that while Sofia saw the concessions as positive it would like to see them expanded.

A provisional agreement announced last month would see Gazprom avoid a fine of up to 10 percent of its global turnover over EU charges it abused its dominant market position and overcharged clients in eight eastern European nations.

The deal is subject to feedback from EU states and market players that should be sent by May 4 and could still be amended or even abandoned.

EU-Gazprom deal clears Bulgaria of South Stream cancellation claims - EURACTIV.com

The (now terminated) South Stream pipeline

13 March 2017

Georgi Gotev

The Commission published Gazprom’s commitments on Monday (13 March) to end a five-year antitrust case and avoid fines heavy fines. As part of the package, Gazprom agreed not to seek any damages from its Bulgarian partners following the termination of South Stream.

In what appears to be a huge deal reached behind closed doors, the Commission agreed with the Russian gas export monopoly to remove restrictions for EU countries from Southern and Eastern Europe to re-sell Russian gas across borders. Until now, bilateral contracts didn’t allow such trade, and in the case of Bulgaria, the implementation of the gas interconnector with Greece was hampered by certain provisions of the Gazprom contracts with both countries.

EU's Move to Kill South Stream Cost Southeastern Europe Future Energy Security - SPUTNIK NEWS

28.02.201, updated 10:16

The countries of Southeastern Europe saw their future access to energy imperiled when EU bureaucrats decided to block the South Stream project, Srbijagas CEO Dusan Bajatovic told Sputnik Serbia; he stressed the importance of the Balkan region obtaining access to Russian gas via the Turkish Stream gas pipeline.

In an interview with Sputnik Serbia, Srbijagas chief executive Dusan Bajatovic said that EU bureaucrats' decision to block the South Stream project had cost Southeastern Europe its future access to energy.

He also underscored the significance of the Russian gas reaching the Balkan region via the Turkish Stream gas pipeline.

Gazprom wants to keep EU market share, block Trans-Balkan pipe route - NEW EUROPE

FEBRUARY 17, 2017, 13:34 
Kostis Geropoulos

Russia is likely to maintain some gas transit through Ukraine even if Turkish Stream and Nord Stream 2 pipelines are built, energy expert Peter Poptchev told New Europe.

“Russia would not mind transiting ‘some’ gas through Ukraine – after it would have realised – if at all – Turkish Stream and Nord Stream 2,” said Poptchev, who served as ambassador-at-large for energy security at the Bulgarian Ministry of Foreign Affairs when the Balkan country negotiated the now-cancelled South Stream pipeline with Gazprom.

Implementation of Turkish Stream Project Requires $7.3Bln Investment - SPUTNIK NEWS

20.12.2016, 19:41 

7 billion euros ($7.3 billion) of investments needed for the full implementation of the Turkish Stream gas pipeline project, according to an explanatory document to the draft bill on ratification of the Turkish Stream intergovernmental agreement. 

MOSCOW (Sputnik) — The full implementation of the Turkish Stream gas pipeline project requires 7 billion euros ($7.3 billion) of investments taking into account the financial losses sustained as a result of the frozen South Stream project, an explanatory document to the draft bill on ratification of the Turkish Stream intergovernmental agreement said. 

Turkish parliament ratifies deal on building Turkish Stream gas pipeline - TASS

December 02, 9:12 UTC+3
Ruslan Shamukov/TASS

ANKARA, December 2. /TASS/. The parliament of Turkey has passed a bill on ratifying an intergovernmental agreement with Russia on constructing the Turkish Stream gas pipeline, the Milliyet daily reported on Friday.

A total of 210 lawmakers out of 223 were in favor of the ratification during the vote, which was held last night. On November 29, the parliament’s foreign relations commission also endorsed the bill.

The Russian authorities announced the Turkish Stream in December 2014 to replace the South Stream gas pipeline project. It was planned that the offshore section of the Turkish Stream gas pipeline would comprise four stretches with a capacity of 15.75 billion cubic meters each.

Energy Minister Albayrak suggests East Mediterranean gas may serve as a positive alternative - DAILY SABAH / ANADOLU AGENCY

27.10.2016

Turkey considers East Mediterrinean natural gas as a positive alternative tool to bring peace to its region and to ensure energy supply security, the country's Energy Minister Albayrak says

Recalling that East Mediterrinean natural gas has been on Turkey's agenda for a long while, Albayrak said they discussed this issue with the Israeli minister at the 23rd World Energy Congress. Turkey and Israel have agreed to establish a mutual energy dialogue, further strengthening ties between the countries following a six-year pause in relations, Israeli Energy and Water Resources Minister Yuval Steinitz said during the congress.

Russia needs EU guarantees to extend Turkish Stream to Europe - RUSSIA TODAY

Published time: 25 Oct, 2016 14:30

Moscow has become more wary about doing gas deals with Brussels after the EU blocked Russia's South Stream pipeline, according to Russian Foreign Minister Sergey Lavrov.

"After the failure of South Stream, we will be ready to extend Turkish Stream to the territory of the European Union only after we received an unambiguous formal paper that guarantees the implementation of this project," Lavrov said on Tuesday, speaking to European businessmen in Moscow.

Lavrov stressed that, according to experts, "in the foreseeable future it will be very difficult for EU countries to live without Russian energy resources.”

An agreement to build the Turkish Stream pipeline was reached in December 2014. It was assumed the pipeline would replace South Stream that had been blocked by the EU.

Gas helps to warm Russia, Turkey relations after tumultuous 12 months - PLATTS

October 25, 2016 05:01 UTC

Moving toward the brink of war is about as serious as a geopolitical relationship can get — and that is where Moscow and Ankara found themselves after NATO member Turkey shot down a Russian fighter jet on the border with Syria on November 24 last year.

Diplomatic efforts succeeded in calming the immediate tensions, but nonetheless Moscow’s reaction was a pledge to “seriously reevaluate” its relationship with Ankara.

As well as a raft of economic sanctions, part of the geopolitical rhetoric was a move by the Kremlin to halt all talks around the already complex negotiation process on the planned TurkStream gas pipeline from Russia to Turkey under the Black Sea.

The link — originally intended as a 63 Bcm/year South Stream replacement — had already been downgraded to a two-line 31.5 Bcm/year project, and talks were becoming increasingly protracted as Ankara insisted the pipeline’s realization be linked to a gas discount on Russian gas imports.

Turkish Stream: The Cost of Russia’s Stubbornness - CARNEGIE MOSCOW CENTER

20.10.2016,
By Mikhail Krutikhin

Unlike Russian gas pumped via Ukraine and Germany, that flowing through Turkey will face tough competition from Azerbaijani, Iranian, Iraqi, and possibly even Turkmen and Israeli gas. Gazprom’s rivals won’t need to ship their gas as far, and they will have much lower pipeline construction costs. The gas market in southeastern Europe is not that big and doesn’t have a lot of room for growth.

Not so long ago, Turkey was on the Kremlin’s list of adversaries following the NATO member’s shooting down of a Russian fighter jet over the Syria-Turkey border. Now Russia is effectively relinquishing control over its southward gas export to Turkey. This is the extent to which the Kremlin is prepared to go to punish disobedient Ukraine—but it will come at a cost to Russia.

Talk of Russian gas pipeline via Greece revived - KATHIMERINI

16.10.2016 14:53

The prospect of a Russian natural gas pipeline passing through Greece is being discussed again in light of a key deal signed between Moscow and Ankara in Istanbul last Monday.

In a sign of warming relations between Ankara and Moscow, that were seriously tested after the Turks shot down a Russian jet near the Syrian border last November, Turkey’s President Recep Tayyip Erdogan and Russia’s Vladimir Putin signed an agreement for the construction of a pipeline under the Black Sea all the way to the Greek-Turkish border.

Turkish Stream is an alternative to the South Stream project (Russia-Bulgaria-Serbia-Hungary-Austria-Italy) which was abandoned last year in the wake of the Ukrainian crisis and a change of heart in Sofia.

Turkey will be an energy hub, Putin says - UPI

European partners view Turkey as a bridge to gas reserves in Azerbaijan.

By Daniel J. Graeber | Oct. 11, 2016 at 6:03 AM

ISTANBUL, Turkey, Oct. 11 (UPI) -- Turkey will become a major energy hub for the European market with assistance from the Russian government, President Vladimir Putin said.

Putin met with Turkish President Recep Tayyip Erdogan during a special session of the 23rd World Energy Congress. Alongside geopolitical issues related to the civil war in Syria, where both sides have varying allegiances, the two leaders discussed new life for the Turkish Stream pipeline, a revision to a much larger project meant to carry Russian natural gas to Europe.

Turkey's geographic position makes it desirable as a bridge to transport energy resources from Central Asian suppliers to the European market.

Russia, Turkey sign gas pipeline deal, talk Syria - DW

10.10.2016, Chase Winter

Turkey and Russia have signed a deal to build a major gas pipeline under the Black Sea. A gradual rapproachment since a falling out last year shows the two can pursue a pragmatic relationship.

Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan on Monday took steps to reconcile differences following a severe deterioration of relations between the two countries earlier this year.

Putin arrived in Istanbul for the World Energy Congress, his first visit to the country since Turkey downed a Russian jet along the Syrian border last November, triggering a crisis. Turkey apologized for the jet incident in June, leading to a gradual improvement in relations and Moscow clawing back damaging sanctions on the Turkish economy.

Russia Pushing Ahead With Turkey Gas Link as Ties Improve - BLOOMBERG

Elena Mazneva
September 3, 2016 — 1:47 PM EEST

• Russia seeks to build Black Sea gas route to bypass Ukraine
• Government sent draft gas pipeline agreement to Turkey

Russia is on track to accomplish a major energy project aimed at cementing its ties with Turkey following a recent thaw in relations.

The government in Moscow expects officials in Ankara to make necessary decisions in one to two months to proceed with a natural gas pipeline under the Black Sea that may kick off by end-2019, Russian Energy Minister Alexander Novak said on Saturday. A draft intergovernmental agreement has been sent to Turkey, he told reporters in the Russian Far Eastern city of Vladivostok.

Opinion: Erdogan, Putin and the touchy Turkish Stream - DW (Deutsche Welle)

The presidents of Russia and Turkey are expected to repair relations and revive a gas pipeline project at a meeting in St. Petersburg on Tuesday. There is, however, one key issue on the table, DW's Andrey Gurkov writes.

The revival of the Turkish Stream pipeline project is expected to be the concrete outcome of the meeting between Russian President Vladimir Putin and his Turkish counterpart, Recep Tayyip Erdogan, in St. Petersburg on Tuesday. The presidents will also recommit to the construction of Turkey's first nuclear power station, in Akkuyu, which is now severely behind schedule.

The main aim of this meeting, which was called at short notice, is to signal a thaw in relations between Russia and Turkey. In November 2015, there was a row over conflicting interests in Syria and the shooting down of a Russian bomber by Turkey's air force. Putin and Erdogan will now be anxious to show their nations, the world and especially the European Union that their quarrel is over. They intend to send a message to Brussels, Berlin, Paris and, of course, Washington: We can be friends without you - and even against you.