Turkey May Suggest LNG Project to Russia

Turkey could propose to Russia building an LNG terminal in an energy complex on its border with Greece, as part of talks on planned new gas pipeline with its northern neighbour, Turkish Energy Minister Taner Yildiz said.

 

Last week Russia scrapped the South Stream pipeline project to supply gas to southern Europe without crossing Ukraine, citing EU objections, and instead named Turkey as its preferred partner for an alternative pipeline.

 

Calling the new pipeline plan "Turkish Stream", a nod to the scrapped South Stream, Yildiz said Turkey would study the new pipeline plan with Russia.

 

"We can do this project but it will not be a transit project," Yildiz told the Bosphorus energy club meeting in Istanbul.

 

"We have proposals on this and perhaps including an LNG terminal, the construction of an integrated energy complex could be on the table," he said.

 

He said that if the planned pipeline was built, it would not necessarily mean that Turkey would buy more gas.

 

Kirill Molodtsov, Russian deputy energy minister, told reporters on Thursday that the first line of a proposed pipeline could be build in some 2.5-3 years starting from now, including preparation of all necessary project documentation.

 

Separately, Yildiz told reporters on the sidelines of the meeting that Turkish oil refiner Tupras had begun buying shipments of Iraqi crude oil.

 

Last month the government of Iraq and the semi-autonomous region of Kurdistan reached a deal on oil exports.

 

Tupras subsequently said it would begin purchasing crude oil from northern Iraq shipped by pipeline and sold by Iraq's Oil Marketing Company (SOMO).

 

"In the short term 550,000 barrels will flow per day and in that way both Baghdad and Arbil crude oil will come. From the outset, Tupras established a link with this crude to (central Turkey's) Kirikkale refinery and this flow has started," Yildiz said on Thursday.

 

Yildiz also said Turkey will invest $300 million with Royal Dutch Shell (RYDAF) to explore for natural gas and oil after discoveries were made in the Romanian basin. Exploration work will begin in January, he said.