FX.co ★ Turkey to boost Blue Stream capacity

Turkey, which is a large importer of the Russian gas, has decided to increase its purchases of blue fuel through the Blue Stream pipeline. Turkish Minister of Energy and Natural Resources Taner Yildiz announced the decision, Reuters reports. Turkey is going to extend the supply by 3 billion cu m from 16 billion cu m to 19 billion cu m.
Yildiz told that the Russian and Turkish sides agreed to expand capacity of the Blue Stream, and now they are discussing a new contract on gas delivery to the private sector “at an affordable price”. To enhance supplies, Gazprom can widen the inshore pipeline in the Russian territory. In mid-April, the Minister of Energy asked to increase the Blue Stream capacity, through which the fuel is exported to Turkey via the bottom of the Black Sea. The Turkish authorities want to enhance the national energy security and guarantee an uninterrupted flow of gas in case of shortages in supplies via the land-based pipeline lying in the Ukrainian territory. Turkey receives 12.5% of its gas consumption through Ukraine via the Western pipeline.
Moreover, Turkey offered Russia to reconsider the current prices. The Minister of Energy noted that the present agreements give Ankara the right to ask for price revision. Last week, Taner Yildiz said the government might consider re-routing the South Stream gas export pipeline if Gazprom requests.
The Blue Stream gas pipeline with a capacity of 16 billion cu m was launched in December 2002 for direct gas deliveries to Turkish gas consumers. But the full capacity utilization has not been used. Thus, in 2012, Turkey was provided with 14.7 billion cu m, in 2013, it received 13.7 billion cu m. The Russian gas is supplied via the Blue Stream to Turkish enterprises under the contract between Gazprom and Turkish Botas. According to the document, Russia should export 365 billion cu m during 25 years.