28east

Politics, religion, and culture where East meets West

Turkey approves South Stream

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According to RT, “There’s no stopping South Stream.” As of yesterday, Turkey has approved the $20 billion natural gas pipeline’s progress through its territorial waters in the Black Sea. Meanwhile, Nabucco, the proposed alternative pipeline (supported by the US and EU, concerned about Russian energy dependency), hovers around $33.7 billion—with considerable complications.

Turkey, of course, “said the two pipelines should complement each other.”

After receiving permission to build South Stream on Wednesday, Gazprom said two long-term gas supply contracts with Turkey would be extended to 2021 and 2025 and pledged to increase deliveries to Turkey in 2012. Turkey told Gazprom in October it would halt imports of Russian gas through a pipeline across Ukraine, Romania and Bulgaria after failing to agree a discount on supplies.

In return Gazprom has granted Turkey’s state gas importer Botas a discount on the gas it buys through contracts for 8 bcm a year and 16bcm/yr, and has agreed to an easing of take-or-pay commitments on the contracts, he said confirming that the level of discount is not being made public.

Lest we forget Turkey’s own dependence on Russian energy.

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Written by M. James

December 29, 2011 at 4:35 pm

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