Russia Halts Gas Hub Project in Turkey, Dashing Hopes

Russia's Major Decision Affects Turkey's Gas Ambitions

Turkey has faced a significant setback as Russia has made a crucial decision regarding gas trade, dampening Turkey's expectations. The Russian state energy company Gazprom has quietly put the brakes on plans to establish a new gas hub in Turkey. This initiative was initially proposed by President Putin following the destruction of the Nord Stream pipeline.

According to reports, Gazprom will no longer pursue the gas hub project in Turkey. The decision to halt the project stems from various technical, political, and commercial challenges. Issues such as limited pipeline capacity from Turkey to Europe, disagreements over gas marketing rights between Russia and Turkey, and the European Union's policy to phase out Russian gas by 2027 have rendered the project unviable.

Background of the Gas Hub Plan

In October 2022, President Vladimir Putin unveiled this plan, which was seen as a new route for supplying 55 billion cubic meters of gas to Europe after the Nord Stream pipeline explosion. Turkey aimed to capitalize on this opportunity, but the situation took an unexpected turn.

Turkey's Strategy Backfires

Initially, Turkey welcomed the proposal but later sought full control over gas sales. This demand raised concerns for Russia, which intended to maintain its energy influence over Europe through the hub. When Russia perceived that Turkey was attempting to manipulate the project for its own benefit, Gazprom ceased discussions altogether.

Current Relations Remain Unchanged

Despite the halted plans for the new hub, the existing gas trade between Turkey and Russia remains unaffected. Turkey continues to be one of Gazprom's major clients. The Turkish Energy Ministry and Botas have not commented on the project, but a Turkish official indicated that Ankara would be open to cooperation if the plan were to be revived in the future.