Gazprom may exit domestic Turkish natural gas market

Latest news

    View the original article:

    Russian gas monopoly Gazprom is expected to leave the Turkish market and will concentrate on gas sales to Turkey, reports business daily Kommersant.

    Read more

    Gazprom begins Turkish Stream pipeline construction

    Gazprombank is completing the withdrawal from Promak, a company which owns a 60 percent stake in the two importers of Russian gas to Turkey – Enerco and Avrasya, the newspaper writes.

    Gazprom Deputy Chairman Aleksandr Medvedev said the company plans to sell another Turkish asset – Bosphorus Gaz.

    According to Medvedev, the Turkish market is “unpredictable” and loses appeal due to the weakening of the lira and regulated tariffs. Kommersant’s sources in the industry said Bosphorus lost about €100 million in 2016.

    Gazprom owns 71 percent of Bosphorus Gaz. The company will sell its share to the local Sen Group, which owns the remaining 29 percent, the newspaper says.

    Leaving the market may strengthen Gazprom’s negotiating position in export prices, as the company will no longer have a direct interest in maintaining the profitability of the sales business within Turkey, experts say. Gazprom has been suing Turkish state corporation Botas and private companies in a price dispute.

    However, no final decision to leave the market has been made, the newspaper added.

    Last month, Gazprom began constructing the Turkish Stream natural gas pipeline off the Russian Black Sea coast.

    The project, with an estimated cost of €11.4 billion ($12.7 billion) was announced in December 2014. However, it was put on hold after the downing of a Russian plane in Syria by a Turkish jet in November 2015.

    The pipeline could extend from Turkey to Europe, but Russia needs solid guarantees from Brussels the project will not be scrapped like the South Stream pipeline project, said Foreign Minister Sergey Lavrov last October.

    In the same category are

    100% accuracy: Russian oracle cat on target with World Cup predictions WORLD CUP 2018 LIVE #FansEyeView #FootWall 24 Jun, 2018 12:23 Mexico see off South Korea to continue perfect World Cup start 23 Jun, 2018 16:53 1...
    Mexico see off South Korea to continue perfect World Cup start Mexico built on their opening game victory over Germany by beating South Korea 2-1 in Rostov-on-Don, thanks to a penalty strike from Carlos Vela and a...
    Saudi Arabia invites Russia to join OPEC as observer, Moscow says it’s ‘an option’ Riyadh has invited Moscow to join OPEC as an observer, the Saudi energy minister says. The announcement follows an agreement between OPEC and non-memb...
    5 female NGO workers abducted & gang-raped while raising awareness about human trafficking Five women were gang-raped by at least half a dozen men in India while performing a street play to bring awareness to human trafficking. The women, wh...
    Major oil spill spreads across Iowa floodwaters, forcing evacuations after train derails (VIDEO) Drone footage released by authorities in Iowa shows oil spreading across flooded fields following a devastating train derailment. Dozens of damaged ca...
    Sex pests: Bill Gates to fund modified mosquitoes in bid to wipe out malaria Bill Gates wants genetically-modified mosquitoes to use sex to destroy their own offspring in a bizarre bid to wipe out malaria. The Microsoft founder...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.