Russia says Bulgaria to complete pipeline stretch of TurkStream by 2020

Gazprom’s TurkStream gas pipeline, which will connect Russia and Turkey, runs through the Black Sea and Bulgaria, where there are concerns that it might fail to meet its forecasted completion date. (AFP)
Updated 21 October 2019

Russia says Bulgaria to complete pipeline stretch of TurkStream by 2020

  • Bulgaria last month struck a $1.2 billion deal with Saudi-based Arkad to complete the 474 km pipeline as early as 2020

SOFIA: Bulgaria has promised to complete its stretch of the TurkStream gas pipeline by 2020 as planned, Russian Foreign Minister Sergei Lavrov said on Monday, trying to tackle skepticism about the timescale of the project.

Last month Bulgaria signed a €1.1 billion ($1.2 billion) contract with Saudi-led group Arkad to build the 474 km pipeline across its territory.

Sofia hopes the whole pipeline, which Bulgaria has dubbed Balkan Stream, will become operational as early as 2020, but given that the contract with Saudi company was signed only in September, some industry officials are doubtful of the timeline.

Lavrov, speaking in Moscow at a briefing with his Bulgarian counterpart Ekaterina Zaharieva, said he was given assurances that the second part of TurkStream would be completed as planned.

FASTFACT

Last week, Russia’s Gazprom began filling the first part of the TurkStream pipeline, which runs via the Black Sea, with gas.

“The partners have underscored that the work will be finished on time, by 2020,” Lavrov said.

Russia, which is building TurkStream to bypass Ukraine to the south, has said its second portion, with an annual capacity of 15.75 billion cubic meters, will pass via Bulgaria to central Europe.

Earlier on Monday, Bulgaria opened the 11 km pipeline that links its gas transport network with Turkey as part of its push to transport Russian natural gas from TurkStream to central Europe and inspected the laying of pipes Arkad has started in northwestern Bulgaria.

The pipeline stretch is part of Bulgaria’s plans to link its southern border with Turkey to its western frontier with Serbia and provide a link to the Russia-backed TurkStream twin pipeline to Serbia, Hungary and Austria.

Last week, Russia’s Gazprom began filling the first part of the TurkStream pipeline, which runs via the Black Sea, with gas.

Moscow plans to launch the first part of the pipeline, with an annual capacity of 15.75 billion cubic meters, by the end of the year.

Speaking to officials at the opening in southern Bulgaria, Prime Minister Boyko Borissov said Balkan Stream was also a political highway ensuring peace along with its economic benefits.

Serbian Energy Minister Aleksandar Antic, who attended the inspection of construction works in northwestern Bulgaria, said Serbia will be ready with the pipeline on its territory by the end of the year and gas can flow once Bulgaria completes its part of the work.


Oil recoups losses as OPEC, US Fed see robust economy

Updated 14 November 2019

Oil recoups losses as OPEC, US Fed see robust economy

  • US-China trade deal will help remove ‘dark cloud’ over oil, says Barkindo

LONDON: Oil prices reversed early losses on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it saw no signs of global recession and rival US shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by US Federal Reserve Chair Jerome Powell, who said the US economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1 percent earlier in the day. US West Texas Intermediate crude was at $56 per barrel, up 20 cents or 0.4 percent.

“The baseline outlook remains favorable,” Powell said.

OPEC Secretary-General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident that the US and China would reach a trade deal.

“It will almost remove that dark cloud that had engulfed the global economy,” Barkindo said, adding it was too early to discuss the output policy of OPEC’s December meeting.

HIGHLIGHT

  • US oil production likely to grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations.
  • The prospects for ‘US crude exports had turned bleak after shipping rates jumped last month.’

He also said some US companies were now saying US oil production would grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations — reducing the risk of an oil glut next year.

US President Donald Trump said on Tuesday Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.

“The expectations of an inventory build in the US and uncertainty over the OPEC+ strategy on output cuts and US/China trade deal are weighing on oil prices,” said analysts at ING, including the head of commodity strategy Warren Patterson.

In the US, crude oil inventories were forecast to have risen for a third straight week last week, while refined products inventories likely declined, a preliminary Reuters poll showed on Tuesday.

ANZ analysts said the prospects for US crude exports had turned bleak after shipping rates jumped last month.