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Petrofac to build Turkish Stream gas terminal, 1st deal since US sanctions

Petrofac awarded a contract to build a terminal on the Turkish coast.


UK services company Petrofac has been awarded a contract to build a terminal on the Turkish coast that will receive natural gas from the planned 31.5 Bcm/year Turkish Stream offshore pipeline from Russia, the company reported on September 5, 2017.

 

The deal - valued at $404 million - is the 1st new investment agreement related to a Russian pipeline since new US sanctions against Russia were passed on August 2 that threatened measures against companies helping to build Russian energy export infrastructure.

 

It also follows strong rhetoric from Gazprom regarding the construction of the planned Nord Stream 2 pipeline in light of the US sanctions, with company officials saying last month the project would be implemented regardless of the measures.

 

«Under the contract, Petrofac will provide engineering, procurement and construction for the receiving terminal, which will be ready for commercial operations in December 2019,» the UK company said.

The contract was signed with South Stream Transport, a wholly owned subsidiary of Gazprom, which is the company developing Turkish Stream.

 

Petrofac had already been working for 5 months with Gazprom on preparation for the project ahead of closing the deal on FEED verification and detailed design work.

 

So far, investors in both Turkish Stream and Nord Stream 2 have shrugged off the US sanctions law that was passed by US President Donald Trump on August 2.

 

Source : Neftegaz.RU