In the energy hegemony Russia incurs large losses, especially loss of its individual property in the Turkmen gas. It is possible to come to this conclusion as a result of the last week meeting of the EU Energy Commissioner, Andreas Piebalgsa, with the President of Turkmenistan, Gurbangulu Berdimuhammedov, where Turkmenistan suggested to sell gas to the EU beyond Russia. Indeed no documents or memorandums have been signed on this issue, but the nod of the Turkmen leader to the West appeared as unexpected because the President of Turkmenistan, Gurbangulu Berdimuhammedov, was supposed to maintain the previous policy, especially unilateral co-operation with Russia.
Currently the whole volume of Turkmenistan's exported gas is purchased by Russian Gazprom for $100 per thous.cu.m. The gas is delivered to Europe via the Russian pipeline where it is sold for more than $200 per thous.cu.m. In addition to material interest, the Turkmen gas is very significant for Russia because it is transported directly via South Ural and Sverdlovsk territory. Without Turkmen gas, these regions may incur lack of energy because the Sibir producers want to sell their gas to the West for harder currency and the government can not achieve balanced redistribution of the gas in Russia. However, governing the export of the Turkmen gas, Russia controls on part of the energy flow from Asia, compensating those that were failure to make through Azerbaijan and Turkmenistan.
At the beginning of 1990s, the foreign investors demonstrated strong interests in participating in producing and transporting oil and gas in Turkmenistan, but could not reach an agreement. Currently several Turkish, Iranian and western companies are working in the Country. However, the difficult business climate and lack of export opportunities present serious obstacles to the exploitation. Expect something in Iran, the only real export route passes via Russia. According to the agreement signed between Russia and Turkmenistan in 2003, the Turkmen side undertook obligations to deliver its gas to Russia over the period of 25 years. It means that over the next 21 years, Russia will have the chance to be the real owner of the Turkmen gas supplies.
Turkmenistan's explored gas reserves are assessed at 2.86trln cu.m. In addition, possibly there are additional reserves in volume of 4.5trln cu.m. The current President of Turkmenistan says that the reserves of the Turkmen energy resources will be enough to fill up the pipelines which are planned to be constructed.
The idea of inexpediency of full dependence on the Russian routes of the exported gas has repeatedly come to the mind of the Turkmen Government. Even Turkmenistan constructed a small pipeline which transports nearly 3bln cu.m. of gas to Iran. The efforts to become capitalized at the expense of the growing Turkish gas sale markets include the project on construction of Trans-Caspian Pipeline to Azerbaijan, Georgia and Turkey via the Caspian Sea.
Other alternative route from Turkmenistan is the long discussed project of pipeline to the south, to Pakistan via Afghanistan and possibly to India. However, due to the cost of the project, only Japan demonstrated certain interests in the investing the project. Supporting the project, the USA bases on the political motives because the pipelines could provide energy resources to its allies, Afghanistan and Pakistan, and make challenge against the monopoly of Russia on the northern routes of the energy export.
Other variant of diversifying the export route of the gas supplies from Turkmenistan is the construction of the pipeline to the People's Republic of China. During his election campaign, the current President of Turkmenistan, Gurbangulu Berdimuhammedov, the gas agreement signed between Turkmenistan and China in April 2006 remains in force and the pipeline will be constructed to China by 2009. The pipeline Turkmenistan-Uzbekistan-Urumchi-Shanghai (with possible access to Japan) should be 6366km in length. However, the gas prices have not been confirmed yet. To ensure the pipeline with raw material, Peking and Ashgabat undertake mutual exploration and development of the new fields on the base of the production sharing agreement.
The alternative idea of constructing gas pipeline was offered to Turkmenistan by Russia who feels the necessity of maintaining influence in Turkmenistan. Thus, in May 2014 the Presidents of Russia, Kazakhstan and Turkmenistan signed an agreement on construction of Caspian Pipeline by 2014. The capacity of the pipeline is 40bln cu.m per year. The construction of the pipeline is very significant for Russia to harm the western interests in Turkmenistan.
The United States of America calls on Ashgabat to increase the export of the Turkmen gas via routes alternative to the Russian pipelines. The American side highlights its readiness to provide billions of investments into the energy sector of Turkmenistan and instead, requires diversifying the routes of gas export.
At the beginning of the current year, the priority infrastructure element in the project of the European Union's energy strategy was the Trans-Caspian pipeline which will provide an opportunity to deliver hydrocarbons to the EU beyond the territory of Russia and Iran. Even the European Union agreed to pay more than those paid by Gazprom for the Turkmen gas. At the beginning of November, the Government of Great Britain signed Memorandum of Understanding with Turkmenistan, which may allow an opportunity to the British companies to gain an access to the gas production in the Country.
Azerbaijan appeared in a favorable situation with the support from Europe and the USA to the construction of the Trans-Caspian pipeline. Constructing the pipeline via Azerbaijan will provide not only tariff revenues to the country, but also additional geo-political tools. However, it is important for Azerbaijan and Turkmenistan to reach a single position in realizing the project. There are certain problems in this regard due to the status, Azerbaijan's debts for Turkmen gas, which are in need of solution as soon as possible.