Gazprom, Turkey Agree on Gas Delivery Conditions

Gazprom, Turkey Agree  on Gas Delivery ConditionsGazprom, Turkey Agree  on Gas Delivery Conditions

Russian energy giant Gazprom has agreed all of the commercial conditions with its Turkish partners on gas deliveries, Gazprom Deputy Chairman Alexander Medvedev said Tuesday.

“Everything is agreed, all of the commercial and economic conditions. There’s no need for a feuilleton,” Medvedev said, Sputnik reported.

Gazprom CEO Alexei Miller said in May that the company and Turkey’s Botas had reached preliminary agreements on discounts for Russian gas and that it would soon be officially formulated. He did not specify the amount of the discount.

“An agreement will be signed by the end of June,” Medvedev added.

Medvedev added that Russia and Turkey are planning to sign an intergovernmental agreement that will cover all the conditions of the passage of the Turkish Stream pipeline.

The Turkish Stream is a substitute for the South Stream pipeline project, which Moscow cancelled in December 2014, citing an “unconstructive” stance of the European Union.

On December 1 2014, Gazprom and Botas signed a memorandum of understanding on the construction of a Black Sea gas pipeline to Turkey with annual capacity of 63 billion cubic meters. The 1100-kilometer (680-mile) pipeline will carry up to 47 billion cubic meters of gas to Turkish-Greek border.

In January, Gazprom announced that an intergovernmental agreement between Russia and Turkey on the construction of the new pipeline is expected to be signed in second quarter of 2015 and that the first deliveries are to start in December 2016.