Watching The World: Turkmenistan's 'lucky path'

June 7, 2010
Turkmenistan's President Gurbanguly Berdymukhammedov, eying increased exports of his country's natural gas, last week participated in a ceremony to weld the first pipes of the East-West gas pipeline.

Turkmenistan's President Gurbanguly Berdymukhammedov, eying increased exports of his country's natural gas, last week participated in a ceremony to weld the first pipes of the East-West gas pipeline.

"The construction of the gas pipeline has both economic and political significance," the president said at Shatlyk field's booster station.

Altogether, the new 620-mile line is designed to transport 1.1 tcf of gas from Turkmenistan's Southern Yolotan-Osman field, which lies near the border with Afghanistan, to its Caspian Sea coastal region.

According to analyst IHS Global Insight, the pipeline does not yet connect to any existing further pipeline, which could bring the gas to Europe, but "it does most definitely offer options for Turkmenistan and all its potential partners to ponder."

Potential partner Russia has been trying to convince Turkmenistan to cooperate on a proposed line that would stretch along the Caspian Sea and into Russia, where it would converge into Gazprom's vast pipe system.

Destination unknown

But the US and Europe, also potential partners, want the Turkmens to ship their gas under the Caspian Sea and into the planned Nabucco pipeline aimed at bypassing Russia's near-stranglehold on European gas markets.

If Berdymukhammedov had any particular partner in mind however, he did not give any indication, suggesting instead that the new East-West line would eventually carry enough gas for all planned export routes.

Indeed, the Turkmen president said the new line would contribute to the creation of a gas transportation system loop that "will enable us to boost the potential to export natural gas, and, at the same time, meet the domestic demand."

The $2 billion pipeline will begin at the vast Southern Yolotan-Osman gas field, which may hold as much as 16 trillion cu m of gas, making it one of the largest in the world. On completion in 2015, the line will carry 30 billion cu m/year of gas.

But where will it go? That's still the key question and one left unanswered for the time being.

Independence stressed

"We'll be building the gas pipeline with our own resources and funds," Berdymukhammedov said, noting that funding will be met by the Turkmengaz, while responsibility for construction will fall to Turkmenneftegazstroi.

By building the new pipeline on its own, Turkmenistan will essentially get the final say about the ultimate destination of its gas—a point stressed by the president.

"We have set high aims before ourselves and we firmly believe we will achieve them," he said, noting that the new pipeline is part of an energy strategy that is "about significantly increasing natural gas exports to various states and regions of the world."

Before the first joint was welded, Berdymukhammedov wrote in large letters "Ak Yol" on the first segment. This is a traditional prayer for anyone embarking on a venture and it means "Lucky Path."

More Oil & Gas Journal Current Issue Articles
More Oil & Gas Journal Archives Issue Articles
View Oil and Gas Articles on PennEnergy.com