Italian Saipem loses $2.2 bn Gazprom deal

Russian Gazprom has cancelled its deal with Italian Saipem for the construction of Turkish Stream's first phase

Italian Saipem loses $2.2 bn Gazprom deal

World Bulletin / News Desk

Russian natural gas giant Gazprom has cancelled its commission to Italian oil services firm Saipem to build the first phase of the Turkish Stream gas pipeline project, Russian Energy Minister Alexander Novak said Thursday. 

The agreement between Gazprom's South Stream Transport and Saipem has been terminated, said Novak at BRICS/SCO summit in Ufa, Russia.

The fate of the Turkish Stream project does not depend on this agreement, Novak said. The partners in the project have not yet fixed a date for the construction of the pipeline.

According to a statement by South Stream Transport, the cancellation was based on many financial and operational disagreements with Saipem on the construction of Turkish Stream's first phase.  

The proposed Turkish Stream pipeline project is planned to carry Russian natural gas under the Black Sea to Turkey's northwestern Thrace region to reach Greece and to further travel on to reach Europe.

The offshore part of Turkish Stream will consist of four pipelines, each with a capacity of 15.75 billion cubic meters. The first of the four pipelines is planned to supply gas for Turkey's domestic use.

Güncelleme Tarihi: 09 Temmuz 2015, 16:56