You're reading: Gazprom says Turkish Stream offshore installation to begin early June

MOSCOW - The offshore installation of the Turkish Stream gas pipeline will begin in the Black Sea shallow-water section in the first ten days of June, Oleg Aksyutin a member of the executive board at Russian gas giant Gazprom, told reporters.

“Yes, of course there is a plan for installation. The suspension of the contract has indeed been lifted, including for works to be carried out. As you know, a contract was signed with Saipem for the first line. The work will be carried out by two vessels, depending on the conditions. Shallow-water work will begin during the first ten days of June,” he said.

For now, Saipem’s pipe laying fleet remains docked at Burgas, according to global positioning data for sea vessels.

“We’ve just lifted the suspension [of work to lay pipes along the Black Sea bed]. Talks are under way with all partners,” Aksyutin said. For now, “we’re working under the old contract,” he said.

The conditions for laying the pipes have not altered and two pipe laying vessels will be used, he said.

Saipem said on May 12 that Gazprom, through its wholly owned subsidiary South Stream Transport, had informed it that it was lifting the five-month suspension of work on the construction of the gas pipeline in the Black Sea, which during this time has seen its route altered and name changed from South Stream to Turkish Stream.

Saipem was hired to build the South Stream gas pipeline to Europe, construction of which was supposed to begin last fall. When Russia decided not to build South Stream, Saipem’s pipe laying fleet was already off the coast of Russia, from which construction was supposed to start. After the decision, Saipem’s fleet docked at the Bulgarian port of Varna. Gazprom continued to pay for services of the idle fleet.

Gazprom values the contract with Saipem not only for the contractor but also, in light of western sanctions against Russia, for the construction permits already received, industry sources have told Interfax. South Stream Transport has received permits from Dutch regulators and Saipem has received permits from Italian regulators. The permission is for construction of a gas pipeline in the Black Sea, not a specific route, which gave Gazprom room to maneuver.

Upon shutting down the South Stream project, Gazprom bought out the 50 percent stake in South Stream Transport of its European partners in the project – Eni, EDF and Wintershall – for $1 billion under a put option.