Turkish Stream pipeline cost revealed
MOSCOW, August 11, 2015 – On Monday, Russia’s state-owned oil and gas company Gazprom announced that the cost of construction for the Turkish Stream pipeline was estimated at €11.4 billion, not including taxes. According to the company, the first branch alone will cost €4.3 billion excluding taxes.
“We’ve sent two offers to Turkey, one [offer] on one line and another on four lines. Currently, the Turkish side is considering those offers,” Turkish newspaper Hurriyet Daily News reported a Russian energy ministry representative as saying.
With an initial capacity of 63 bcm (2.22 tcf), the pipeline route is planned to travel through the Black Sea to the Turkish-Greek border.
The pipeline, which is a replacement of the abandoned Southern Stream pipeline project through Bulgaria, will be critical to Russia for exporting natural gas to European markets. The original project was scrapped after Russia backed out due to permitting difficulties and sanctions.