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Will Turkey play trump card at big "gas" table?

Oil&Gas Materials 30 January 2015 16:51 (UTC +04:00)
Turkey continues playing a trump-card of its geographical location on the border between Europe and Asia.
Will Turkey play trump card at big "gas" table?

Baku, Azerbaijan, Jan. 30

By Emil Ismayilov - Trend:

Turkey continues playing a trump-card of its geographical location on the border between Europe and Asia. Russia wants to supply additional volumes of gas to the European market via the so-called "Turkish Stream" through Turkey.

A statement by Turkish Minister of Energy and Natural Resources Taner Yildiz that after determining the route of the 'Turkish Stream' gas pipeline, a healthy competition has begun between this gas pipeline and the Trans-Anatolian gas pipeline project (TANAP), implemented by Azerbaijan as part of gas supplies to Europe, the next move was made.

Along with Azerbaijan, Turkey urged Turkmenistan to join the TANAP project, which is part of the "Southern Gas Corridor", during a meeting of foreign ministers of the three countries in Ashgabat.

Given the recent surprising events on the gas market, Turkmenistan's joining the Southern Gas Corridor is not far away, and this idea has its logical confirmation.

Firstly, back in 1999, Turkey and Turkmenistan signed a contract for the supply of 15.6 billion cubic meters of gas. Secondly, the proposal of Turkmenistan's joining TANAP was already announced during last year's visit of the Turkish president to Ashgabat.

To deliver Turkmenistan's energy resources to Europe, a gas pipeline of only 300 kilometers must be built. The construction of a pipeline along the bottom of the Caspian Sea will allow to deliver Turkmen gas to Azerbaijan and then to transport it to the European market through Georgia and Turkey.

In fact, it is much easier to implement the project of construction of the Trans-Caspian Gas Pipeline compared to the Turkish Stream, because of the lesser work volume required.

We can recall the statement of the Russian side that the Turkish stream will pass 660 kilometers in the old corridor of South Stream and 250 kilometers in the new corridor (towards the European part of Turkey).

Accordingly, the construction costs will be significantly lower in the first case. On the other hand, only preliminary calculations have been made for the Turkish Stream, while there is significant development within the Trans-Caspian gas pipeline project which has long been considered.

The Trans-Caspian gas pipeline project is not a pipedream and it can be easily implemented after reaching a clear agreement. The proof here is that real work is underway within the South Caucasus Pipeline Expansion project, construction of TANAP and TAP which will allow the Caspian Sea gas to enter Europe.

Moreover, the European Union, which is interested in the diversification of the gas supply routes and sources bypassing Russia, pays great attention to the Trans-Caspian gas pipeline project.

Although Turkmenistan exports its gas in three directions - to Russia, China and Iran - the creation of the western route can open a completely new page in this country's development history.

Azerbaijan has repeatedly stated that it is ready for the transit of Turkmen gas. On the other hand, Europe is ready to receive that gas, while Turkmenistan, which most likely hasn't yet received an attractive offer, still says it is ready to sell gas (up to 40 billion cubic meters per year) on its own border.

However, even the absence of a decision on the Trans-Caspian gas pipeline doesn't stop the Turkish side, which has long aspired for the EU, and now it has a chance to win back.

Even given the fact that Turkey is a strategic partner of Azerbaijan, in the current condition in the gas market it is trying to snatch a bigger piece of the pie, resorting to open speculation and being drawn deeper into this rather complicated game...

Edited by SI

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Emil Ismayilov is Trend Agency's staff journalist, follow him on Twitter: @Emilsmail

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