Turkmenistan, Ashgabat, May 8 / Trend , G.Hasanov/
The possibility of Europe's direct access to Turkmen gas is one of the intrigues of the energy summit in Prague, which was convened on May 8 upon the European Union's initiative. Before this forum, one of the organizers, the European Commission President Jose Manuel Barroso said that it is necessary "to link Turkmenistan to European markets through the Southern Caucasus", while focusing on "the importance of long-term partnership."
Turkmenistan is one of a key supplier of natural gas in the Caspian region and recently, the West has vigorously joined the fight for its resources, confirmed by British GCA audiences. The Prague summit aims to provide strong political support and specific commitments on the development of the Southern Corridor, including the Trans-Caspian connection pipeline. About necessity to enter the direct access to Turkmen raw materials sources, Mr Barroso said in his video sent to the participants of the conference on proviging security of energy transit, which recently took place in Ashgabat under the auspices of the UN.
Brussels is actively looking for alternatives in the Caspian region via the Nabucco pipeline project which aims to secure "Old World" of the energy crisis experienced this winter due to the uncoordinated issues of transit between Moscow and Kiev. During the visit to Ashgabat, Barroso noted that the "gas crisis in January, gave a sign that serious guarantees are necessary for the uninterrupted supply of energy resources, and the EU will seek to diversify sources, including from Turkmenistan.
Official Ashgabat has not yet openly spoken about joining Nabucco, but it has already taken some steps that have given greater confidence to European diplomats, offering investment and technology, not only in the field of transportation, but the extraction of gas reserves. Ashgabat has signed a Memorandum of long-term cooperation with the German energy concern RWE, which consists in the consortium Nabucco, which, according to observers, in spite of the declaration documents, can be called a "window on Europe". The European Union demonstrated a response step by agreeing to sign a trade agreement with Turkmenistan, which for years was rejected. It is a way for European companies to the Turkmen market, through investment and trade in quality.
EU Special Representative for Central Asia Pierre Morel noted in Ashgabat that the EU intends to support the development of new resources and develop new routes for Central Asian producers. Energy security envisages creating and applying new rules of interaction."
Today's summit in Prague is unprecedented: for the first time, potential partners for the Southern Corridor decided to meet at the highest level to discuss common interests. It is planned to approach signing of a multilateral intergovernmental treaties, including Nabucco. However, the Turkmen signature is unlikely to appear in the document, the observers believes. President Gurbangulu Berdimuhammedov - covering all the country's key positions - including the Prime Minister refrained from participation in this and he sent Vice Premier Tachberdi Tagiyev, curator of the country's energy and fuel complex instead himself.
At the same time, BerdImuhammedov frequently talked about the need for multiple access of energy to world markets, producers' right to fix their own fuel prices, importance of support from the UN in ensuring the safety of transit - in lien with the eastern standards and all of these are already a breakthrough. Moreover, local experts say Turkmenistan, can afford to "make haste slowly." In late 2009, an additional route will appear in China, which vigorously take up the implementation of the "Century Project" and is ready to purchase annually up to 40 billion cubic meters of natural gas through 7000-km gas pipeline.
So far, major monopolist of the Turkmen gas sale was Russia and Iran bought in small amounts for its their northern provinces through the pipeline, which was launched in 1996. The independence after the collapse of the Soviet Union made Turkmenistan as one of the five gas-rich countries in the world, but not alone, the main pipelines passed through Russia. Moscow denied a quota to direct access of Europe for Turkmen gas (existing practice prior to 1993) and assumed the role of manager.
During a long-term enough period, Gazprom Open Joint Stock Company (OJSC) bought Central Asian gas for a cheaper price and resold it to Europeans for world prices. Only in recent years, Ashgabat, Astana, and Tashkent have fixed the price of their energy close to the "commercial". "It is also clear that diversification of the European price level is important for countries - gas producers and consumers," the Turkmen official source said.
About a month ago, the export of Turkmen gas to Russia was interrupted because of an accident in the Turkmen section of Central Asia-Center main (CAC). Russian experts put forward versions of the incompetence of dispatch services of Turkmenistan and the deterioration of the pipe. In response, Turkmenistan's Foreign Ministry accused Russian partner and described the cause of the incident as late notification of the reduction of gas. Ashgabat also stated that "violation of contract obligations" caused the country's losing considerable funds. Before the accident, Moscow said that buying "contracted" gas - at a loss, has been steadily dropping due to global decrease in the demand for raw materials. Representative of U.S. Department of State, George Krol called the accident at the CAC as another reason for Turkmenistan to find an alternative.
Russian Vice Prime Minister Igor Sechin who arrived in Turkmenistan to resolve the situation with the accident dedicated his report the January crisis, in which he put the responsibility on inadequate mechanisms for the Energy Charter and the position of Ukraine. "... The Energy Charter Treaty did not justify expectations. This mechanism was unfruitful for both a preventive and emergency measures when the crisis has already begun," Sechin said. In his view, despite the fact that early warning mechanism functions as part of Russia - European Union energy dialogue, and it has been skillfully used - "the alarm sounded at the time - an adequate reaction did not appear. As a result, there were problems among European consumers," Sechin said.
The Europeans understand that Nabucco, initially being "politicized" is not insured from problems. If the Trans-Caspian route issues arouses, according to analysts' estimates, issue of the legal status of Caspian Sea can emerge. So far, the issues of transit to Turkey have not yet agreed. Turkey and Russia would like to be as a manager. Turkish Energy and Natural Resources Minister Helmi Guler said in Ashgabat that Ankara wants to play an important role in transporting energy from the Caspian region. "Turkey wants to establish commercial relations with Turkmenistan to develop energy resources and supplies. We believe that Nabucco will be implemented," he said.
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