Turkey’s decision could cut off Black Sea countries like Ukraine from LNG tankers

Turkey announced that it will not allow the passage of tankers with liquefied natural gas (LNG) across the Bosporus Strait for fuel supplies to Ukraine, Turkish Ambassador to Kiev Yonet Can Tezel said in an interview Friday. The Bosporus Strait is the only waterway connecting the Black Sea to the Sea of Marmara and on to the Mediterranean, meaning no LNG tankers will be able to enter or leave the Black Sea.

The Ambassador said Turkey’s position was based exclusively on the aspect of maritime shipment safety as the passage of tankers with hazardous cargoes posed a threat to residents of Istanbul, which is divided by the Bosporus Strait, reports Russian news agency TASS.

“The passage of LNG tankers through the Bosporus is a problematic issue,” said the Turkish Ambassador. “First of all, this relates to safety in the strait which is quite busy and narrow. Istanbul is a densely populated city while LNG tankers are considerably larger than oil tankers. In case of incidents, and such things happen with oil tankers, the consequences for the population and Istanbul would be disastrous.”

The decision has nothing to do with the country requesting passage or the international situation with Ukraine and Russia, the Ambassador said. “We would have replied in the same way to any other Black Sea neighbor, which would have turned to us with a request for the passage of LNG-tankers across the Bosporus,” he said.

Ukrainian Deputy Energy and Coal Minister Svetelik said on Friday Ukraine planned to build an LNG terminal worth €846 million ($923.87 million) for receiving LNG supplies. Svetelik also believes that the construction of a gas pipeline to connect the LNG terminal with the country’s gas transportation system would cost €113 million ($123.40 million).

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication.

Legal Notice