Russia and Turkey have signed a Memorandum of Understanding to construct a new offshore natural gas pipeline from the Russian Federation across the Black Sea to Turkey. The pipeline will have a capacity of 63 billion cubic meters per annum with 14 billion cubic meters envisioned for the Turkish market and some 50 billion cubic meters for Europe.
The agreement comes in the wake of last week's surprising announcement by Russian President Vladimir Putin that Russia was no longer interested in completing the South Stream Natural Gas pipeline project, originally intended to supply southeastern and central Europe with 63 billion cubic meters per annum Russian gas beginning in 2017.
The new pipeline to Turkey will have the Russkaya Compressor Station as its starting point. Russkaya was to have been the beginning of the now erstwhile South Stream project.
"We will concentrate our energy resources on other regions of the world," declared Putin. "We will also work with other markets and Europe will not receive this gas, as least not directly from Russia."
In addition to the constructing the new pipeline to Turkey Russia has agreed to expand the existing capacity of Blue Stream from 16 - 19 billion cubic meters per annum.