Cost of Turkish Stream estimated at 11.4 billion euros

Cost of Turkish Stream estimated at 11.4 billion euros

Cost of Turkish Stream estimated at 11.4 billion euros

CİHAN photo

Russia’s state-owned Gazprom has estimated the cost of the construction of four pipelines for the Turkish Stream at 11.4 billion euros, with the cost of the first line construction estimated at 4.3 billion euros, as reported by Russian news agency TASS on Aug. 10.

According to a Gazprom executive, the design configuration of the project involves the construction of four threads and its phased commissioning.

“The cost of the four threads is estimated at 11.4 billion euros. The cost of the first line is estimated at 4.3 billion euros,” he said, as quoted by TASS. 

On Aug. 7, Russia sent two offers related to the intergovernmental agreements on the Turkish Stream to Turkey, he noted. 

“We’ve sent two offers to Turkey, one - on one line and another - on four lines. Currently, the Turkish side is considering those offers,” the Energy Ministry representative said.

Two weeks ago, Russian Energy Minister Alexander Novak said Russia was ready to sign an intergovernmental agreement on one line of the Turkish Stream within one to two weeks. 

“Everything will depend on the Turkish Stream, as we’ve submitted our agreement project to the Turkish side. They’re now studying it. We expect to receive their response to our suggestion,” he said. Novak added Russia expected to sign an intergovernmental agreement within the shortest possible time, adding it was ready to do so “within a week or two.”

A continuing delay in the Turkish Stream energy project stems from factors in both Russia and Turkey, Energy Minister Taner Yıldız said Aug. 4, in an interview with Anadolu Agency. 

“[The delay in beginning] the pipeline project to carry Russian gas to Europe, with Turkey as a transportation hub, was caused because the Russian side was late in delivering the coordinates for the construction route, and because of talks to form a new coalition government in Turkey,” Yıldız said.

“The delivery date for the route coordinates had been extended until June 10, or to a later date. Turkey cannot begin any construction without these coordinates,” said Yıldız.

“The inter-governmental agreement for the project should be ratified in parliament, and Turkey must first form a new government through either a coalition or a snap election,” Yıldız added, since talks for a coalition government were ongoing among Turkish political parties.