Turkish Gas Pipeline May Get New Momentum

The Turkish Stream project, the implementation of which is widely discussed after the normalization of relations between Turkey and Russia, may receive a new impetus this week.

The construction of the gas pipeline is expected to be one of the topics for discussion during the meeting of Russian and Turkish Presidents Vladimir Putin and Recep Tayyip Erdogan in St. Petersburg on August 9. This will be the first meeting since the incident with the downed bomber, which led to the deterioration of relations between the two countries.

Prior to the meeting, some statements were made from both sides, demonstrating interest and willingness to resume negotiations on the project. Russia and Turkey are discussing the construction of two branches of the Turkish gas flow pipeline, Russian Energy Minister Alexander Novak said in an interview with Russia on TV 24.

In addition, information was published in the Russian media with reference to the deputy chairman of the board of Gazprom, Alexander Medvedev, that an agreement was reached on the creation of a working group of the energy departments of Russia and Turkey in order to return the project to the implementation stage.

At the same time, a source in Gazprom said that it is too early to talk about the prospects of the project, and it is necessary to wait for the results of the upcoming meeting of the presidents. "Any progress is possible only after the meeting of the presidents on August 9," the source said.

Turkey imported 19.94 billion cubic meters of gas in January-May 2016, of which 16.22 billion cubic meters were supplied through pipelines, and 3.72 billion cubic meters were imported liquefied natural gas (LNG). Russia supplied 50.84 percent of Turkey's total gas imports in January-May 2016.

Gas consumption in Turkey decreased by 2.4 percent to 43.6 billion cubic meters in 2015, according to the 2016 World Energy Statistical Survey. Turkey imported 39.7 billion cubic meters of gas via pipelines in 2015. Analysts believe there is a need for additional gas in the Turkish market.