Greek-Turk gas pipeline agreement next month

The government expects to sign an agreement with Turkey by the end of March to link the two countries with a pipeline to pump natural gas from Iran and the Caspian into the heart of Europe. George Agrafiotis, general secretary of Greece’s development ministry, said in an interview with Reuters yesterday that the pipeline would run from Ankara to Komotini in northeastern Greece. It would be an extension of the existing pipeline running from Iran’s Tabriz to the Turkish capital. «We are in talks with Turkey for the Ankara-Komotini pipeline. By the end of March we expect to have agreed with Turkey,» he said. Agrafiotis said Greek Development Minister Akis Tsochadzopoulos was scheduled to go to Ankara at the end of March to conclude the talks. Tsochadzopoulos would also follow up with visits to Teheran and the Caspian region to discuss gas supplies. Turkey and Iran, blessed with the world’s second biggest natural gas reserves after Russia, are keen to forge a link with Greece to tap into the EU’s huge market. Greece has already slated EU funds to extend its network to Italy. Greece currently pumps some 3 billion cubic meters annually from its northern pipeline, a joint Greek-Russian venture, into the country. During a visit to Greece late last year, Russian President Vladimir Putin pledged to increase the capacity to 6 billion cubic meters, Agrafiotis said. But he estimated Greek domestic natural gas needs to top 7.5 billion cubic meters per year in the coming years. He said the Greek-Turkish pipeline would pump through an additional 1.5 billion cubic meters for domestic consumption but would also be used to transit gas to Italy. «Europe wants the pipeline. There are already discussions between Greece and the European Union on this expansion,» Agrafiotis said. He said the Ankara-Komotini pipeline, once officially finalized, would take about two years to build and start operations. «We are looking at other sources (apart from the existing pipeline) both for competition and for added natural gas. Two sources are better than one,» he said. However, analysts have said the government will find it hard to sell BTC in the current industry climate.