Arab Today, arab today turkey aims to be gas transit hub
Last Updated : GMT 07:17:52
Arab Today, arab today
Arab Today, arab today

With 2 new pipelines

Turkey aims to be gas transit hub

Arab Today, arab today

Arab Today, arab today Turkey aims to be gas transit hub

Turkey's dream is to be gas hub
Istanbul - Arab Today

Turkey has staked a claim to become a major transit hub with two new pipelines to pump gas from Azerbaijan and Russia to Europe, but boasting may prove easier than fulfilling the ambitious projects.
Turkey and Azerbaijan last week started work on the new 1,850 kilometre (1,150 mile) overland Trans-Anatolian Natural Gas Pipeline (TANAP) which by 2018 aims to provide 10 billion cubic metres of gas per year (bcma) to European consumers and 6 bcma to Turkish customers.
At the same time Turkish and Russian officials are in intense negotiations to agree terms for a brand new Turkish Stream pipeline under the Black Sea.
With the EU backing TANAP and Russia behind Turkish Stream, Turkey is now placed in a hugely strategic position in the intensifying rivalry between Brussels and Moscow over gas supply.
Turkey's dream is to turn the region on the western side of the country bordering Greece and Bulgaria into a gas hub, where multiple pipelines will meet to pump gas to EU consumers.
The EU-backed TANAP appears sure to be built, as finding returns on the $40-$45 billion investment in Azerbaijan's Shah Deniz 2 gas field depends on the pipeline.
Turkish Stream however is a far less stable proposition.
- 'Takes time' -
Questions remain over whether Turkey has sufficient capacity to become a genuine gas hub, which requires far more than the building of pipeline infrastructure.
"To be an energy hub there are a number of ingredients that are necessary, none of which exist as yet in Turkey," said Edward Chow, senior fellow at the Center for Strategic and International Studies (CSIS).
He pointed to the lack of a strong international banking system, a solid legal system to resolve normal commercial disputes and sufficient storage facilities.
"Turkey has the advantage of location, it's near a lot of oil and gas producing countries. Being a hub takes time," he said.
The $10 billion TANAP project -- whose construction was launched by President Recep Tayyip Erdogan and his Azerbaijani counterpart Ilham Aliyev -- is firmly backed by the European Union which hopes it will help Europe reduce its dependence on Russian gas.
But analysts say Turkey will need to ramp up its total capacity from the initial plan of 16 bcma for it to make any major impact on the EU's goal of diversifying supplies away from the Russia of President Vladimir Putin.
"In the longer term if TANAP carries much more that will start to give it greater significance. That is something that will probably happen but will not be imminent," said Laurent Ruseckas, senior advisor in global gas at IHS Energy.
- 'Hard to fathom' -
The plan to build Turkish Stream was dramatically announced by Putin in December in Ankara, as a replacement for the South Stream pipeline and to bypass Ukraine.
Putin blamed the EU for the collapse of the South Stream project, which was to have come ashore in Bulgaria.
But Russia and Turkey, who already operate the undersea Blue Stream pipeline, have yet to agree a final accord on Turkish Stream.
In exchange for agreeing to host the pipeline, Turkey secured from Russia a reduction on its own gas imports of 10.25 percent, a welcome concession for a country with slowing growth and pressured currency.
Yet Russian daily Kommersant reported last week that the final negotiations had reached a "dead end' over the pricing terms. Turkish Energy Minister Taner Yildiz insisted however that the two sides were in agreement.
"I suspect this will happen but it is not ready to go yet, final agreements must be negotiated and signed between Gazprom and (Turkey's state energy firm) BOTAS," said Ruseckas.
Even once the agreements are signed, political will and financial backing will be needed to build the four pipelines required to create the envisaged capacity, which like South Stream is 63 bcma.
"A one or two strand Turkish Stream is conceivable in my mind," said Chow.
"A 63 bcma system is hard for me to fathom any time soon," especially given the financial strains of Russian gas giant Gazprom and the pressure from Western sanctions over Ukraine, he said.
One pipeline has a capacity of around 16 bcma.
Still the plan to build Turkish Stream is a sign of the strengthening relations between Russia and Turkey. The two have managed to prevent disputes over the Syria and Ukraine conflicts from damaging their emerging alliance.
While TANAP could be seen as a competing project to Turkish Stream, Erdogan with conspicuous timing telephoned Putin on the evening of the TANAP ceremony to discuss the Russian-Turkish pipeline plan, the Kremlin said.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkey aims to be gas transit hub Arab Today, arab today turkey aims to be gas transit hub

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 06:51 2017 Saturday ,18 February

Blames government for economic crisis

GMT 06:35 2017 Saturday ,18 February

MP calls for re-operating closed companies

GMT 13:35 2017 Friday ,17 February

Confirms Britain is biggest investor in Egypt

GMT 15:55 2017 Thursday ,16 February

Egyptian foods completely unobserved nor healthy

GMT 11:18 2017 Wednesday ,15 February

Reveals plan to get out of financial crisis

GMT 12:33 2017 Tuesday ,14 February

Yemeni accuses militias of challenging oil

GMT 18:07 2017 Monday ,13 February

Over 3000 workers lost their jobs
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday