Energy Headlines
October 24, 2010
Kazakhstan, Russia, Turkmenistan plan new gas pipeline
Kazakhstan, Russia, and Turkmenistan signed a declaration in Turkmenbashi, Turkmenistan, on May 12 to build a new natural gas pipeline along the shore of the Caspian Sea, the turkmenistan.ru website reported. The declaration was signed at a summit attended by Kazakh President Nursultan Nazarbaev, Russian President Vladimir Putin, and Turkmen President Gurbanguly Berdymukhammedov. A separate declaration, also signed by Uzbek President Islam Karimov on May 9, promised to expand the gas-transportation system linking the four countries.
Putin told journalists that the reconstruction of existing facilities and construction of a new pipeline "would increase their throughput capacity by at least 12 billion cubic meters by 2012," Interfax reported. While noting that "it is too early to talk about specific parameters of this project," Russian Industry and Energy Minister Viktor Khristenko said that after 2010, "The further increase in the gas pipeline's capacity, in accordance with the exploration and development of new assets in Turkmenistan, may reach 30 billion cubic
meters a year," Interfax reported. Khristenko also said that the sides plan to draft an intergovernmental agreement on the new pipeline project by September 1, 2007, ITAR-TASS reported. Khristenko also told journalists in Turkmenbashi on May 12 that a Western-backed trans-Caspian pipeline project "does not exist," RIA-Novosti reported. "It exists [only] as a certain intention." Khristenko added that the "technological, legal, and ecological risks [of the proposed trans-Caspian pipeline] are so big that it will be impossible to find an investor...unless it is a political investor who does not care how much gas there is to pump through," "The New York Times" reported.
For his part, Berdymukhammedov said that a trans-Caspian pipeline "remains on the table," Interfax reported. Experts queried by news agencies suggested that a Russian-backed plan to build a new pipeline along the Caspian likely spells the end of hopes for a trans-Caspian pipeline. Roland Nash, a researcher at Moscow-based investment bank Renaissance Capital, told Bloomberg that while Turkmenistan could use the trans-Caspian pipeline as a "bargaining chip," "Russia will have first call on Turkmen gas."
Putin told journalists that the reconstruction of existing facilities and construction of a new pipeline "would increase their throughput capacity by at least 12 billion cubic meters by 2012," Interfax reported. While noting that "it is too early to talk about specific parameters of this project," Russian Industry and Energy Minister Viktor Khristenko said that after 2010, "The further increase in the gas pipeline's capacity, in accordance with the exploration and development of new assets in Turkmenistan, may reach 30 billion cubic
meters a year," Interfax reported. Khristenko also said that the sides plan to draft an intergovernmental agreement on the new pipeline project by September 1, 2007, ITAR-TASS reported. Khristenko also told journalists in Turkmenbashi on May 12 that a Western-backed trans-Caspian pipeline project "does not exist," RIA-Novosti reported. "It exists [only] as a certain intention." Khristenko added that the "technological, legal, and ecological risks [of the proposed trans-Caspian pipeline] are so big that it will be impossible to find an investor...unless it is a political investor who does not care how much gas there is to pump through," "The New York Times" reported.
For his part, Berdymukhammedov said that a trans-Caspian pipeline "remains on the table," Interfax reported. Experts queried by news agencies suggested that a Russian-backed plan to build a new pipeline along the Caspian likely spells the end of hopes for a trans-Caspian pipeline. Roland Nash, a researcher at Moscow-based investment bank Renaissance Capital, told Bloomberg that while Turkmenistan could use the trans-Caspian pipeline as a "bargaining chip," "Russia will have first call on Turkmen gas."
Source: RFE/RL
Copyright (c) 2007. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org
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