Gas deal sets record
Turkey and Greece on Thursday signed two memoranda of understanding (MOU) on long-term cooperation in the energy sector, thus setting the stage for their biggest ever bilateral business schemes. The memoranda, signed at the start of a two-day visit to Ankara by Development Minister Akis Tsochadzopoulos, envisage respectively the extension of a natural gas pipeline to Greece and the connection of the two countries’ electric grids. The first memorandum, signed by Greece’s Public Gas Corporation (DEPA) and its counterpart in Turkey, BOTAS, aims to promote links from the various sources of natural gas in Iran and the Caspian region to Europe via Turkey and Greece. The two sides have agreed to build a 285-kilometer (177-mile) pipeline, running from Turkey’s northwestern city of Karacabey to Greece’s northeastern city of Komotini. Under the terms of the project, Turkey will construct 200 km (124.2 miles) of the pipeline and Greece the remaining 85 (52.8 miles). According to a joint press release by Tsochadzopoulos and Turkey’s Energy and Natural Resources Minister Zeki Cakan, the MOU envisages the commencement of negotiations for the supply initially of about 500 cubic meters of gas annually to DEPA as of 2005 and cooperation over swaps of amounts of liquefied natural gas. The two sides have also agreed to adopt all measures necessary to «facilitate the transit of natural gas through an interconnected system of pipelines to Europe and the Balkans.» Cakan said each side would shoulder the respective cost of the project on its soil and Tsochadzopoulos said that Greece would seek European Union subsidies for its segment and EU financing for the Turkish portion. The second MOU, signed between representatives of Greece’s Public Power Corporation (PPC) and Turkey’s TEIAS, envisages the activation of a 400 kW power transportation line in 2006 and preliminary testing for the parallel operation of the Turkish and other Balkan grids. The two sides also pledged to encourage their respective construction and engineering companies that have considerable international experience to undertake energy projects in Greece, Turkey and third countries. The two ministers hailed the memoranda as important steps in the improvement of relations between the two countries and in consolidating security and stability in the region. «What counts most in such a project is not so much the size and cost of financing but the multiple resulting benefits at the political, economic, developmental and social levels,» said Tsochadzopoulos.
