Oil Diplomacy Blog: Global Perspectives on Foreign Oil and Gas Issues

Is Turkmenistan really a 'global player'?

Turkmenistan "remains as an important player in the global energy market for many years to come," said George A. Krol, US deputy assistant secretary of state for South and Central Asian affairs.

"Turkmenistan, with its geographical location, can play a unique role in the regional and global security, whereas its huge hydrocarbon resources, with the diversification of export routes, can reach many countries of the world," Krol told delegates at the "Oil and Gas of Turkmenistan - 2009" conference in Asgabat.

In an apparent reference to Russia, Krol also noted that "too much dependence on a single supplier or transit route creates both economic and political vulnerability and can result in failures with supplies and loss of revenues for energy producers."

Earlier, while assessing Turkmenistan's energy policy, Kroll confirmed the intention of the US business community to step up fruitful contacts with Turkmen partners in the oil and gas industry.

What is your response? Do you think Kroll is overstating the case for Turkmenistan? Or do you think his views are sound? Is Turkmenistan going to become a major player in the global energy market? If so, how soon and what are the obstacles?

Labels:

posted by: noreply@blogger.com

091118 :Is Turkmenistan really a 'global player'?

Post Comment

1 Comment:

Agata Loskot-Strachota said...
Turkmenistan is an important gas producer/exporter in the post-soviet area and may once become an important player in Eurasian region. It's actual significance will depend on realization of it's energy policy goals and ability to diversify further its gas export routes. This year Turkmenistan will start exporting gas to China and has increased twice its export capacity in Iranian direction. These developments are of quite big importance, and especially gas pipeline to gas/energy hungry China can increase Turkmenistan's role as gas exporting country.
We also witness this year Turkmenistan's struggle for resumption of gas supplies to Russia on terms favorable for Ashabad, and forectast that this struggle can last for a few months more (as gas demand is not growing too fast and as Gazprom itself has agreed to sell smaller-than-contracted quantities to Ukraine in 2009/2010). This means Turkmenistan is a player, and it plays it's game inter alia with worlds biggest gas producer and exporter. But it seems to me that to become an important actor, the significant one influencing international gas market developments opening of an export route connecting Turkmenistan with Europe (alternative to Russian corridor) is needed. This could make from Turkmenistan an element of a greater concept of energy security architecturte in Eurasian continent.
But this is quite difficult to say when it can be realized or even if it happens at all. This years experience has shown that Turkmenistans need to find alternative to Russian buyers for its gas and it's quest for partners in Europe has not resulted in any sound political agreements or deals. EU has not been too much visibly lobbying for it's priority Southern Corridor in Central Asia nor in Turkmenistan itself, US appear to distance themselves more and more from gas developments not only in Caspian region but in the whole CIS area, and beside RWE no Western energy companies got deeper engaged in Turkmen gas sector

Mon Dec 07, 09:48:24 AM CST

Post Comment

Eric Watkins
by Eric Watkins

Eric Watkins joined Oil & Gas Journal in 2001 as Middle East Correspondent and now serves as its Oil Diplomacy Editor, drawing out the industry’s political implications. His column Watching the World appears weekly in Oil & Gas Journal, while his news articles appear daily on Oil & Gas Journal Online. Eric’s work is based on his experience as a correspondent in the Middle East, Europe, and Central Asia. He lived in Saudi Arabia, 1981-88; Yemen, 1989-94; the UK, 1988-89 and 1994-2000; and Cyprus, 2000-04. Additional assignments have taken him to Africa, the Arabian Gulf, the Caucasus, and Central Asia.

Advertisement