Russian gas giant Gazprom is mulling building a second Turk Stream pipeline that will further increase the transit capacity that by passes Ukraine, the company said on February 14.

The so-called Turk Stream 2 is only an idea now and would be subject to potential demand for gas and getting all approvals. It would also add significantly to the company’s future capex at a time when investment into expensive pipelines was supposed to start winding down following the completion of the Turk Stream 1 pipeline from Russia to Turkey, the Power of Siberia pipeline from Russia to China and the Nord Stream 2 pipeline from Russia to Germany – all due for completion starting at the end of this year.

Gazprom approved increasing the investment program for 2018 by 17% to record-high RUB1.5 trillion ($22bn) in September. 

Gazprom might construct a Turk Stream 2  gas pipeline if there is sufficient demand and the company receives all the necessary approvals, Kommersant reports, citing Gazprom CEO Alexey Miller.

“Theoretically, the new pipeline might, in addition to the other pipelines currently under construction (NS-2 with 55bcm and Turk Stream with 31.5 bcm capacity), cover all Gazprom’s European gas export transportation needs. However, that could be difficult, given the political overtones that surround the issue, we think. In our view, this development is at the idea stage and has no short-term implications for the name, although it might add capex risks to the medium-to-longer term forecasts. We note that gas transit via Ukraine stood at 90bcm in 2018,” Ekaterina Rodina of VTB Capital (VTBC) said in a note.