Greece and Russia strike pipeline deal

LONDON, June 19, 2015 – Greece and Russia have signed a deal to construct an extension of the Turkish Stream gas pipeline that would carry Russian natural gas to Europe via Turkey, Associated Press reported today.

The 1,100-kilometre Turkish Stream pipeline will have a capacity of 63 bcm per year with 75 percent going from Greece to the EU. The project is estimated to cost around €2 billion, the Russian
Minister of Energy, Aleksandr Novak, told RIA news agency at the St. Petersburg Economic Forum.

As part of the agreement, Russia and Greece will create a joint venture company that will construct the Turkish Stream pipeline across Greek territory.

The two countries will have equal shares in the company and the Russian shareholder in the joint enterprise will be Russia’s state-owned Vnesheconombank, Novak added.

The pipeline will supply Turkey with around 16 bcm while the remaining 47 bcm will go to a centre on the border between Greece and Turkey.

Construction on the Greek part of the pipeline is expected to start in 2016 and will be completed in 2019.

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