Gazprom has taken the first step towards reconciliation with Turkey to build a second gas pipeline Turkish stream. The company disclosed that on 21 September 2017, the Board of Directors will consider the issue on participation of Gazprom in TurkAkim Gaz Tasima joint venture with the Turkish state company Botas, which will build the second one. About it writes Kommersant.
The laying of the first thread intended only for the consumption of Turkey started in the end of June 2017, and the situation around the second leg, which gas should go to Europe remains uncertain.
“The agreement that Russia and Turkey concluded in October 2016, gave the green light only to the construction of the first line. To create a second thread is required to conclude a Protocol between the Turkish government and Gazprom, which will contain, including the terms of the joint venture on the land site. The intergovernmental agreement was nevertheless specified in common parameters: all the power of a new line 15.75 billion cubic meters per year will belong to Gazprom, he will sign with the joint venture agreement ship-or-pay (deliver or pay) for this volume on this thread is not applicable Turkish law”, – the newspaper writes.
Ankara traditionally connects all gas issues with each other. In this case, the conclusion of a Protocol on the second line of the Turkish stream depends on the resolution of the dispute between Gazprom and Botas the price of gas.
Dispute arose in 2015 and linked with the public promise of Vladimir Putin to reduce the price of gas for Turkey after its consent for laying a Turkish stream. Discount 10.25% of the basic price was agreed, however, Gazprom wanted to provide discount signed an intergovernmental agreement on the pipeline. The process was delayed, in the fall of 2015 had a crisis in relations with Ankara because in Syria shot down a Russian su-24 bomber, and in December 2015, Botas has officially filed to the Stockholm arbitration to revise the contract price. The amount of the retroactive payment that Gazprom will have to pay in case of loss may exceed $2 billion.
“Gazprom has never ruled out a peaceful solution to the dispute, but now the company is running out of time – the beginning of the strip of the second leg is planned for March-April 2018 otherwise, Gazprom runs the risk not to have time to enter this thread before the expiry of the transit contract with Ukraine at the end of 2019”, – writes the edition.
Now the sides are negotiating, to be able to conclude the agreement before the start of the dispute in Stockholm arbitration (scheduled to begin in late September). Previously Gazprom has strengthened its negotiating position, in fact, withdrawing from the domestic market of Turkey.
Earlier Russian media reported that Gazprom will have to negotiate with Kiev on a new transit contract, if the demand for Russian gas in Europe will remain at the current level.