Russia’s Gazprom plans to deliver gas to Israel via Turkey

In December 2007 Gazprom increased gas supplies from 30 to 38 million cubic meters per day. In January, after Iran suspended deliveries, Blue Stream -- the pipeline with which Gazprom transports gas to Turkey -- pumped close to 41 million cubic meters of gas to Turkey daily, which corresponds to an increase of about 33 percent. In addition, Gazprom supplies natural gas to Turkey through a second pipeline via the Balkans, where supplies were sharply increased between Jan. 18-21 to 42.4 million cubic meters -- 4.5 million cubic meters above the forecasted volumes.

In a Friday interview with Today's Zaman, Gazprom said Turkey was one of their most important markets, and currently the third largest in Europe. The volume of exports to Turkey via the Blue Stream gas pipeline has continued to grow from year to year. In 2006, 19.9 billion cubic meters of gas were exported to Turkey, and "according to preliminary estimates, Russian natural gas supplies to Turkey grew over 10 percent in 2007 to comprise close to 22 billion cubic meters." Gazprom also emphasized that they have been a reliable supplier of natural gas to Turkey, especially in times of gas shortage. Furthermore, the company said Blue Stream represented an already existing gas transportation corridor for the implementation of new projects, one of which could become the Blue Stream 2, which is currently at the revision stage. With the realization of the Blue Stream 2, Gazprom will be able to deliver to Israel and to the Middle East. "The political situation in this region suggests that the option of transit through Turkey is the only viable one for the time being," Gazprom said.

Gazprom is also interested in delivering gas to end consumers in Turkey, either directly or through a subsidiary company or a joint venture, taking into account the liberalization of the Turkish market. At the same time, Gazprom also said it was ready to reinvest a part of the revenues from gas exports to Turkey into the development of the Turkish gas transmission and gas distribution infrastructure, as well as its gas and power facilities, which will promote the development of the country's gas market as a whole.

Tuğrul Erkin, general coordinator of Bosphorus Gaz -- Gazprom's joint venture in Turkey, said Gazprom's further investments in Turkey were subject to Turkey's reception of such investments. Gazprom could invest large amounts if it was invited to the tenders in Turkey, Erkin said, adding that Russia was an important commercial partner in natural gas and the bilateral relations should be extended more.

Meanwhile, the ownership structure of the Bosphorus Gaz Corporation has changed. Previously Gazprom held a 40 percent stake, with Turkey's Şen Group owner of another 40 percent and a Dutch firm with 20 percent. Gazprom now has a 50 percent stake, while Şen Group and the Dutch firm have 25 percent stakes each.