Countering Russian President Vlamimir Putin's assertion this week that the $40 billion South Stream natural gas pipeline project was dead in the water, European Commission President Jean-Claude Juncker declared the project was very much alive and can go ahead.
Ukrtransgaz, the Ukrainian pipeline operator, has secured a 150 million euro loan from the European Investment Bank to upgrade a 120 km section of its transnational gas pipeline including two compressor stations to Europe. Similarly the European Bank for Reconstruction and Development (EBRD) is expected to lend the Ukraine 163 million euros for this purpose later this month.
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.
Looking to capitalize on a massive natural gas reservoir discovered in disputed territorial waters 90 km off the joint Israel - Lebanese border, Israel has proposed that the EU invest in a multi-billion euro 1530 km offshore pipeline to carry the product to Europe.
