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RIA Novosti: Gazprom to supply 250 mln cu m to Turkey annually until 2021

MOSCOW, February 28 (RIA Novosti) – Russia’s Gazprom Export and Turkey’s Shell Enerji A.S. have signed a contract to supply Turkey with 250 million cubic meters of gas annually until 2021, a joint news release said.

The contract was struck between Gazprom Export, which handles the energy exports of Russian energy giant Gazprom [RTS: GAZP], and Shell Enerji, a subsidiary of Royal Dutch Shell, responsible for gas imports on the Turkish market.

“Under the contract, Gazprom will supply 250 million cu m of gas annually to Shell Enerji A.S. in the period up to 2021,” the news release said.

Shell Enerji A.S. won the tender for part of the gas contract belonging to the Turkish pipeline company Botas November 30. The tender was organized within a nationwide campaign to liberalize Turkey’s gas market.

Under the contract, Shell Enerji A.S. will start supplying Russian gas to Turkish customers in the second quarter of 2007.

Russia and Turkey established a gas partnership in 1984. Between then and 2005, Russia supplied a total of 138.7 billion cu m of natural gas to Turkey, and has been steadily increasing gas exports to its Black Sea neighbor in the past few years.

In December 2004, Gazprom and Botas signed a memorandum on gas cooperation, stipulating Russian gas supplies to Turkey directly or through subsidiary companies to end consumers. Gazprom and Botas also agreed to invest in gas distribution projects, develop underground gas storage facilities and gas power units on Turkish territory.

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