Turkey, Israel agree pipeline project for oil, gas

ANKARA, Dec 15 (Reuters) Turkey and Israel have agreed to build a pipeline linking the Black and Red seas, Turkey's energy minister said today, in a move that will boost the Jewish state's energy security and Turkey's role as an energy hub.

The pipeline project will involve transportation of oil, natural gas, electricity, water and fibre optic cables, the minister, Hilmi Guler, told reporters.

Turkey, a candidate for European Union membership, aspires to become a major hub for energy exports from Russia and the Caspian basin to markets in Europe and beyond.

Turkey is also one of the few Muslim countries to foster strong trade and security ties with the Jewish state.

''This project will have very important consequences for regional stability and development and for political developments,'' Guler said.

He gave no price for the project but said Turkey was in talks with Russia and other countries on participation in it.

''The project's feasibility study will be completed in six months and then implementation will begin,'' Guler said.

The pipeline is an extension of a 550-km line that will link Turkey's Black Sea port of Samsun and Ceyhan on its Mediterranean coast. Turkey's Calik group and Italy's ENI are preparing the design for that pipeline. The Calik group will also take part in the construction of the extension to Israel, Guler said.

The Samsun-Ceyhan pipeline is expected to have capacity of 1.2-1.4 million bpd of crude.

ASIAN MARKETS? Guler gave no details about the route of the pipeline beyond Ceyhan, but Turkey's Radikal newspaper said on Friday it would extend to Israel's Ashkelon, joining up there with an existing pipeline to the Israeli Red Sea port of Eilat.

Officials have previously said the pipeline would be undersea, avoiding a land route through Syria and Lebanon.

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