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Updated May  6, 2021


TurkStream: Russia's Southern Pipeline to Europe


Russia's leading state-owned energy company, Gazprom,
has long sought to protectits share of Europe's natural gas
market. Along with the controversial and stillunfmished
Nord Stream2 project (see CRS In Focus IF11138,
Russia 's NordStream 2 Pipeline: Continued Uncertainty),
Gazprom's TurkStreamproject may strengthen Russia's
footholdin Europeanenergymarkets, especially in
southeastern Europe. It also could cement Turkey's
longtime status as a lead recipient of Rus sian gas, even as
Rus sia's overall share of Turkish gas imports has recently
decreased.

Opponents of the TurkStreamproject, including some
Members  ofCongress,haveexpressed concernthatthe
project could erode Ukraine's transit role for natural gas.
Many  analysts maintain that Moscow could use its energy
exports as leverage in countries that are dependent upon
Rus sian naturalg as. The United States, in turn, supports
projects to diversify naturalgas supplies to Europe and
undercut Russia's market dominance.

Background
The EU is Rus sia's largest natural gas export market. In
2019, Russia supplied about 38% ofthe EU's natural gas
imports. Turkey is Russia's largest gas export market after
the EU, although volumes have fluctuated. Due to Turkish
increases in pipeline supply fromAzerbaijan and spot
purchases fromliquefied naturalgas (LNG) suppliers such
as Qatar and the United States, Russia's share of Turkey's
imports decreased fromabout 50% in 2018 to around 33%
in 2019 and 2020. However, long-terms upply contracts and
other factors may affect Turkish efforts to maintain or
broaden diversification.

Russia has exportednaturalgas to Turkey through several
pipelines (see Figure 1). The north-south Trans-Balkan
Pipeline (TBP), completed in the late 1980s, transported
Russian gas to Turkey untilJanuary 2020. Via Ukraine,
TBP  crosses Moldova, Romania, and Bulgaria. In addition
to transporting gas to these countries and Turkey, TBP also
delivered Russiangas to North Macedonia and Greece. The
Blue Streampipeline, which became operationalin 2003, is
a joint project between Gazpromand Italy's Enithat
crosses the Black Sea and makes landfall in central Turkey.

The TurkStreamproject arose after the 2014 cancellation of
Rus sia's South Stream project, a Gazprom-led venture that
would have transported Rus sian natural gas across the
Black Sea to Bulgaria and further into Europe. The South
Streamproject collapsed in the wake ofRussia's invasion
of Ukraine and amid a dispute between Gazpromand the
EU  involving regulatory is sues. In late 2014, Russian
President Vladimir Putin announced South Stream's
cancellation as Gazpromsigned a memorandumof


understanding with BOTA$ Petroleum Pipeline
Corporation, a Turkish state-owned company, to construct
TurkStream.

Russian President Putin and Turkish President Recep
Tayyip Erdogan inaugurated TurkStreamin January 2020.
The TurkStreamsystemconsists oftwo parallelpipelines
with a total capacity of 31.5 billion cubic meters (BCM) per
year (15.75 BCM each). The pipelines enter the water in
Anapa, Russia, and make landfall in Kiyikoy, close to
Turkey's border with Bulgaria. The first pipeline supplies
natural gas to Turkey (for more on Turkey's status as a
regional energy transport hub, s ee CRS Report R41368,
Turkey: Backgroundand  U.S. Relations). The second
pipeline, for which onshore construction continues, extends
into southeastern Europe and has begun to deliver g as to
some markets there.

Many  analysts view TurkStreamas a counter to the U.S.-
backed Southern Gas Corridor project, which transports
naturalgas fromAzerbaijan to Europe. The Southern Gas
Corridor includes three connecting pipelines: the South
Caucasus Pipeline (SCP) in Azerbaijan and Georgia; the
Trans-Anatolian Pipeline (TANAP) through Turkey; and
the Trans Adriatic Pipeline (TAP), which extends from
Greece to Italy via Albania and the Adriatic Sea. These
threepipelineshave an annualtotalcapacity of16BCM-
roughly half the total planned capacity of TurkStream. The
first delivery of gas through TANAP to Turkey was in June
2018, and TAP made its first deliveries in late 2020. Turkey
has contracted for 6 BCM from TANAP, and 1OBCM  is to
continue on through TAP (mostly to Italy and also to
Greece and Bulgaria).

Figure 1. Southeastern European  Gas Infrastructure
   Existing Pipeline Op. =Operaring; Canc. = Canceled
 I LNG lmort Terminal a C TurkStream Usessetionsof Trans-Balkan


      Tap   .                               C



Source: Created by CRS usingdatafrom U.S. Department of State,
I HS, ESRI, European Network of Transmission System Operators for
Gas, and Bulgartransgaz


https://crs reports.congress.gor

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