* Turkey's Tupras buying Iraqi oil - minister
* Ankara to invest $300 million in exploration with Shell (Adds Russian Energy Ministry's comments para 7)
By Humeyra Pamuk
ISTANBUL, Dec 11 (Reuters) - Turkey could propose to Russiabuilding an LNG terminal in an energy complex on its border withGreece, as part of talks on planned new gas pipeline with itsnorthern neighbour, Turkish Energy Minister Taner Yildiz said.
Last week Russia scrapped the South Stream pipeline projectto supply gas to southern Europe without crossing Ukraine,citing EU objections, and instead named Turkey as its preferredpartner for an alternative pipeline.
Calling the new pipeline plan "Turkish Stream", a nod to thescrapped South Stream, Yildiz said Turkey would study the newpipeline plan with Russia.
"We can do this project but it will not be a transitproject," Yildiz told the Bosphorus energy club meeting inIstanbul.
"We have proposals on this and perhaps including an LNGterminal, the construction of an integrated energy complex couldbe on the table," he said.
He said that if the planned pipeline was built, it would notnecessarily mean that Turkey would buy more gas.
Kirill Molodtsov, Russian deputy energy minister, toldreporters on Thursday that the first line of a proposed pipelinecould be build in some 2.5-3 years starting from now, includingpreparation of all necessary project documentation.
Separately, Yildiz told reporters on the sidelines of themeeting that Turkish oil refiner Tupras had begunbuying shipments of Iraqi crude oil.
Last month the government of Iraq and the semi-autonomousregion of Kurdistan reached a deal on oil exports.
Tupras subsequently said it would begin purchasing crude oilfrom northern Iraq shipped by pipeline and sold by Iraq's OilMarketing Company (SOMO).
"In the short term 550,000 barrels will flow per day and inthat way both Baghdad and Arbil crude oil will come. From theoutset, Tupras established a link with this crude to (centralTurkey's) Kirikkale refinery and this flow has started," Yildizsaid on Thursday.
Yildiz also said Turkey will invest $300 million with RoyalDutch Shell to explore for natural gas and oil afterdiscoveries were made in the Romanian basin. Exploration workwill begin in January, he said. (Reporting by Humeyra Pamuk; Additional reporting by KatyaGolubkova and Denis Pinchuk in Moscow; Writing by Daren Butler;Editing by Mark Potter and William Hardy)
