The European section of TurkStream and the Nord Stream II natural gas pipeline projects can be realized with an understanding from the European Commission (EC) to include a deal on Ukraine, the Oxford Institute for Energy Studies' Natural Gas Research Program Founder, Jonathan Stern said on Wednesday.
Stern told Anadolu Agency that both projects could be the subject of negotiations in which Ukraine is included as a bargaining chip. He said that the best solution for TurkStream’s second line, which will carry Russian gas to Europe via Turkey, is to reach an agreement with the EC.
'The EC will want some kind of concession from Gazprom on a related issue, perhaps on the Nord Stream II, or perhaps on Ukraine. But the key thing for TurkStream’s second line is that the gas may need to reach EU countries through other pipelines. If the Trans Adriatic Pipeline (TAP) is not fully utilized, then some Russian gas could go through TAP,' he said.
He added that 'there are lots of different options but this cannot be done except with an understanding with the EC, which I think will have to include an understanding on Ukraine.'
He affirmed that some provision for Ukraine will definitely be a topic up for discussion for both projects and said that possible negotiations could include sending a minimum amount of gas through Ukraine if the Nord Stream II is to go ahead.
'I don’t know what the minimum could be, perhaps 30 billion cubic meters or perhaps more. That’s the kind of agreement that will be needed and I believe will be reached,' he asserted
- Nord Stream II's construction
The Nord Stream II, which will carry Russian gas to Germany through the Baltic Sea, with a capacity of 55 billion cubic meters (bcm) is co-financed by five European companies, E.ON, Wintershall, Shell, OMV and Engie.
In reference to the Chief Financial Officer of the Nord Stream II Paul Corcoran’s comments that the project is on track and ready for construction in summer, Stern replied that 'It's of course possible because they have pipes and the barge ready to go. However, they have a problem with Denmark but they can delay this section to see what happens and if necessary detour around Danish territorial waters.'
Denmark passed a law at the end of November to permit the Danish foreign minister to ban the Nord Stream II natural gas pipeline from traversing its waters.
In addition to Denmark’s objections, Poland and Lithuania also oppose the project as they consider it a threat to European energy security while increasing Russia's gas monopoly in Europe.
The EC's new draft law proposed on Nov. 8 stipulates that EU third party access or anti-monopoly legislation applies to offshore pipeline segments in EU territory.
The TurkStream natural gas pipeline is a project with a capacity of 31.5 bcm out of which 15.75 bcm is destined for Turkey and 15 bcm for Europe via Turkey.
The project's first line is on track and half of the construction has been completed, and permission has been granted for the second line of the project.
However, the EC could object to the project's second line if it considers that it does not conform to the EC's anti-trust regulations in line with the Commission's third energy package.
On the other hand, Gazprom claims that the TurkStream and the Nord Stream II projects are fully compliant with European regulations.
By Murat Temizer in Vienna
Anadolu Agency
energy@aa.com.tr