-TurkStream to soon start operations
Russian energy company Gazprom announced the filling of both pipelines with gas for the TurkStream project last week, effectively meaning the pipeline project has reached its final stage while reflecting the success of the project’s collaboration between Turkey and Russia.
The dual pipeline is set to have a total capacity of 31.5 billion cubic meters (bcm), out of which the first line will carry a capacity of 15.75 bcm of Russian gas to Turkish consumers. The second line will carry another 15.75 bcm of gas to Europe via Turkey.
Negotiations are underway for gas flow to Europe via Ukraine to extend the existing contract that expires at the end of the year.
Gazprom announced last week that an official proposal had been sent to Ukrainian state gas company Naftogaz to extend the natural gas transit to Europe via Ukraine for a year.
In 2014, Gazprom and Naftogaz appealed against the Arbitration Institute of the Stockholm Chamber of Commerce. Naftogaz demanded a payment of $17 billion, claiming that Gazprom did not meet its natural gas shipping obligations.
The arbitral tribunal, which ruled that Gazprom indeed did not fulfill its obligations to ship natural gas to Ukraine, decided that Gazprom would pay Naftogaz $2.56 billion. While Gazprom refused to make the payment, courts froze the Russian company’s assets in some European countries.
Gazprom advised that the Kyiv administration give up its legal demands from Gazprom in order to extend the contract or sign a new contract.