ANKARA
Turkey's Energy Minister Taner Yildiz said Tuesday that the delay in the Turkish Stream project is due to factors from Russia.
The pipeline project to carry Russian gas to Europe, with Turkey as a transportation hub, was caused because the Russian side was late in delivering the coordinates for the construction route, Yildiz said.
"The delivery date for the route coordinates has been extended until June 10, or to a later date. Turkey could not begin any construction without these coordinates," said Yildiz, speaking to Anadolu Agency in an exclusive interview.
Russian President Vladimir Putin scrapped the South Stream project last December and announced Turkish Stream, planned to deliver Russian natural gas to Europe through the Black Sea and Turkey by four pipelines with a capacity of 63 billion cubic meters.
Turkey has also agreed to a 10.25 percent discount on Russian gas purchases, and a $1 billion retroactive payment is due on this agreement which was dated Jan.1. Yildiz said. Turkey is the second-largest consumer of Russian gas, Yildiz pointed out. Yildiz added that Turkey demands that Russian gas prices should not be higher than what EU countries pay, and the price difference is closing up.
The minister explained that the discount and the construction of the pipeline are separate issues, but being handled simultaneously at Russia's demand. Both agreements are yet to be signed.
Turkey will build the 265-km part of the pipeline going through in its borders, while the part beneath the Black Sea will be constructed by Russia, Yildiz said.
"The inter-governmental agreement for the project should be ratified in parliament, and Turkey must first form a new government with either a coalition or a snap election," Yildiz added, since talks for a coalition government are ongoing among Turkish political parties.
Russia and Turkey have been engaged in disputes on several political issues, including the "1915 events" regarding Armenian citizens in the Ottoman empire, and the crisis in Syria, but Yildiz says "joint projects are isolated from politics" between the two countries.
Mentioning his talk with Maros Sefkovic, Vice President of the European Commission, in charge of Energy Union, Yildiz said: "As an EU member, if you demand natural gas on the one hand and refuse the project on the other, it would create a contradiction, which Europe needs to overcome," Yildiz said. Yildiz pointed out that demand for natural gas continues to grow in Europe.
Turkey hopeful to win Iran arbitration case
Yildiz said Turkey was hopeful of winning the dispute on gas prices with Iran at the International Court of Arbitration (ICA), as litigation has ended, and a decision is expected to come out soon.
Turkey has repeatedly objected to the high cost of Iranian gas and has demanded a discount by taking the case to the ICA, as the country purchases 10 billion cubic meters, and pays $487 per 1,000 cubic meters.
"I think the court has made its decision. We opened the case expecting to win it and we keep to the same belief now," Yildiz said.
Asked about relations with Iran after the agreement on nuclear energy between Iran and world powers, Yildiz said Turkey has always maintained good relations with Iran and will continue to do so.
On a pipeline between Europe and Iran that is planned to carry 35 billion cubic meters of Iranian gas, Yildiz said Turkey would help for the construction process through Turkey.
Yildiz said he recommends that Turkish investors place funds in Iran's economy, while warning that Iran's constitution should be changed to create an easier business environment after sanctions are removed.
Advanced technology to protect pipelines
Pipelines in Iraq and Iran came under attack by the PKK, which has been declared a terrorist organisation by U.S., EU and Turkey, in the southeastern region of the country. Yildiz said extra measures would be taken for better protection as the area is protected by Turkish military forces.
"We are working on the protection of pipelines by using advanced technology. There is a road map as we are working on jointly with the general staff. The pipelines will be safer," Yildiz said.
The attack on pipelines also cuts oil revenues for the Kurdish regional government and the Iraqi government, Yildiz noted. He said that oil deliveries through the Kirkuk-Ceyhan pipeline have yet to be launched.
