Gazprom announces the cost of the gas pipeline to Turkey

Gazprom has officially announced the cost of Turkish Stream pipeline for the first time – it is €11.4 billion without VAT, and with taxes, according to the Kommersant it is €13.6 billion. According to analysts, this assessment is adequate and the company could find money for the project. But for a while, all these figures are virtual: the construction terms are unclear, the final number of the gas pipeline branches is still unknown, and contracts with contractors are not signed.

The cost of the Turkish Stream export gas pipeline in 4-branch variant will make up €11.4 billion without VAT, while the cost of the first branch is €4.3 billion euro, said yesterday the first deputy head of Gazprom’s department for project management, Alexei Serebryakov. The monopoly has for the first time officially revealed the cost of Turkish Stream since in December 2014 it replaced the closed project South Stream with it. The costs on the marine section of the latter was estimated at €9 billion  (13.2 billion, taking into account the cost of credit), and on the basis of this assessment analysts calculated the potential cost of Turkish Stream until now. The fact that the first branch is significantly - by 80% - more expensive than the next ones is caused by the fact that it includes the cost of shore infrastructure, in particular the compressor station Russkaya near Anapa.