ANKARA - Turkey and Greece signed on Tuesday an agreement on interconnection of natural gas networks through a 280 kilometers of pipeline.
Energy and Natural Resources Minister Hilmi Guler, Greek Development Minister Apostolos Athanasios Tsokhatzopoulos, administrators of Petroleum Pipeline Corporation (BOTAS) and Greek DEPA company signed the agreement.
Under the agreement, 209 kilometers of the pipeline will be constructed in Turkey. The construction is expected to cost 80 million U.S. dollars.
The rest of the pipeline will be constructed in Greece and it is expected to cost 15 million Euro.
Seven hundred and fifty million cubic meters of natural gas will be transferred to Greece a year at first stage.
Eleven billion cubic meters of natural gas, including three billion cubic meters to Greece and eight billion cubic meters to South Europe via Italy, is targeted to be transported through the pipeline in following years.
GULER: THIS AGREEMENT WILL BRING OUR COUNTRIES CLOSER ALSO IN ENERGY SECTOR
Speaking at the signing ceremony, Guler pointed out that the project would be the beginning of new works, adding, ``we will complete Southeast European natural gas ring by transporting energy reserves of the regional countries, especially Azerbaijani natural gas, to Italy via Greece.``
Stressing that the project would further strengthen friendly relations with neighboring Greece, Guler noted, ``in the beginning, Greece will be given an annual 750 million cubic meters of natural gas. We expect this amount to increase up to 3 billion cubic meters in the course of time. Meanwhile, 8 billion cubic meters of natural gas will be transported to Europe via Greece.``
Noting that transportation of natural gas through the pipeline would start in 2006, Guler said, ``we will try to do our utmost to hold a tender for the project as soon as possible.`` He requested Tsokhatzopoulos to expand efforts to put the project into practice soon.
Recalling that two significant developments occurred in a week, Guler said, ``first of these developments is purchase of electricity from Turkmenistan, and the second is the agreement we signed with Greece. It means to say that Asia and Europe shake hands through Turkey.``
Meanwhile, Tsokhatzopoulos congratulated the companies for the project.
Reminding that works had continued for more than two years, Tsokhatzopoulos said that inter-governmental agreement about the project was signed in February.
Describing it as a very important and historical agreement, Tsokhatzopoulos said that the agreement was the beginning of a very significant role to be undertaken by Turkey and Greece in the future.
Noting that the agreement was a sign of dynamic co-operation between the two countries, Tsokhatzopoulos said that Turkey and Greece had proved that they could settle confidence and stability in the region as a result of their co-operation.
Tsokhatzopoulos said that the agreement enabling the European Union (EU) to benefit from alternative energy resources had a great strategic meaning.
Recalling that their role had gained importance as a result of fully liberalization of electricity and natural gas markets between 2004 and 2007, Tsokhatzopoulos recalled that it was decided earlier that the EU would provide the necessary funds to put the project into practice without any delay.
He said that the pipeline enabled them to transport energy reserves of the Caspian region and Egyptian natural gas to Europe via Syria and Lebanon.
Noting that Turkey would enter the European energy market via Greece, Tsokhatzopoulos said that Greece would do its utmost to carry this co-operation to the more positive levels.
Upon a question, Guler said that 209-km pipeline would start from Karacabey in Turkey extending to Kipoi city of Greece by passing through the Sea of Marmara. He noted that the project would cost approximately 80 million U.S. dollars.
Noting that a consensus of opinion was reached earlier about transportation of 100 billion cubic meters of natural gas to the EU-member countries via Turkey, Guler said that Turkey would obtain an income of 1-1.5 billion U.S. dollars.
Tsokhatzopoulos added that the rest of the pipeline would be constructed in Greece, adding that some parts of the pipeline would be broadened.
(UK-AÖ) 23.12.2003