Turkmenistan is committed to multiversional principle in export pipeline construction: FM

Oil&Gas Materials 31 July 2009 12:10 (UTC +04:00)

Turkmenistan, Ashgabat, July 31 / Trend , H.Hasanov/

Turkmenistan is committed to multiversional energy flow, particularly in the construction of export pipelines, the Turkmen Foreign Ministry reported.

"The resource capabilities and advantages of the geographical situation of the country are considered as factors of positive influence on the development of regional and interregional economic cooperation, an important condition to maintain a balance of interests in the Eurasian energy area on the basis of partners' equal access to the Turkmen hydrocarbons sources and their means of delivery," the ministry reported.

Turkmenistan is one of the key players in the Caspian region on the natural gas supply. Until recently, almost all Turkmen gas has been imported to Russia, which currently offers to re-consider a long-term contract. At the same time, deliveries were suspended initially due to technical reasons - the accident on the Central Asia pipeline, the consequences of which were soon removed. In this period the Turkmen leadership has intensified its activities in the European direction. President Gurbangulu Berdymuhammedov has recently announced that Turkmenistan could provide the Nabucco project with fuel on the border.

Turkmenistan's Foreign Ministry drew attention to the fact that the country has consistently pursued a policy of peace, good neighborliness and cooperation based on mutual interests, including in energy, a willingness, not just in word but in deed to use its wealth of resource potential, the benefits of geographical position to promote the goals of both internal development and a broad international partnership - all of it organically fits into the logic of Turkmenistan's action in the global arena.

The report provides a number of facts that demonstrate Turkmenistan's cooperation with foreign countries in energy, which has especially been intensified in recent times.

On July 16, the Turkmen State Agency for the Management and Use of Hydrocarbon Resources and European giant RWE Dea AG (Germany) signed the Production sharing agreement. The agreement provides for exploration work in the offshore block No. 23. Under geologists' estimates, this unit is projected for significant amounts of hydrocarbon resources, primarily natural gas. Their specific amounts will be determined as a result of the exploration work program, which includes a seismic survey and drilling.

"The significance and prospects of the signed document is obvious. In essence, the matter is about beginning of practical realization of important and promising directions of Turkmenistan's long-term energy strategy toward Europe," the Foreign Ministry said.

Official Ashgabat believes the mutual interest of Europe and Turkmenistan in the energy sector today is natural and justified - both economically and commercially. The European energy market - one of the largest in the world - feels a constant need for a large and uninterrupted supply of energy raw materials to ensure the normal functioning of the European economy, which is about 30 percent of the world.

"Building a relationship with energy producing countries of the Middle East, Africa and Asia, Europeans propose mutually beneficial partnership and reasonable prices for raw materials supplied. This is consistent with the approach of Turkmenistan, based on the following principle: the geographical multiversional export of natural gas at market price, calculated on an international formula. In this regard, one should consider the nature, content and prospects of our country's relations with existing and potential partners - the consumers of the Turkmen hydrocarbons," the report says.

Turkmenistan and the European Community have launched thematic discussions on opportunities for cooperation in energy sector recently. In May 2008, Turkmenistan and the European Union signed a memorandum on cooperation in the energy sector. During this period, the Turkmen-European meetings were held on various levels, including those involving the largest energy companies in Europe. Their effectiveness has been high, and the above-mentioned agreement with RWE is an example for it.

The Turkmen Foreign Ministry highly appreciated the concrete steps taken by the European Community to enhance cooperation. In 2008, the House of Europe was opened in Ashgabat, and the head of the Delegation of the European Communities Commission in Turkmenistan has been recently appointed, the European Parliament approved the interim trade agreement with Turkmenistan and the European Union.

The report says expanding routes to Asia. Turkmenistan is currently supplying gas to neighboring Iran and has planned to transport the natural energy source to China early next year.

It has been over 10 years that Turkmenistan carries out a stable natural gas supply to Iran via the Korpeje - Kurt-Kui route. Under the agreements reached earlier, the volume of the fuel supply is up to 8 billion cubic meters per year.

At present mutual opportunities have increased, and as a result of the recent negotiations, the Turkmen and Iranian sides agreed to increase the volume of gas transported to Iran to 14 billion cubic meters per year and 8 billion cubic meters of this volume will be supplied from the Korpeje field, located in the west of Turkmenistan, and 6 billion cubic meters - from the south-eastern Turkmen field Dovletabad.

In 2009, with this purpose, a gas pipeline will be built in the east of Turkmenistan to the border with the Islamic Republic of Iran, via which additional gas supply will begin in the fourth quarter 2009. The parties also discussed the possibility of increasing the Turkmen natural supplies gas to Iran in order to bring tits volume to 20 billion cubic meters per year, regarding perspective use of resources from the Dovlatabad field. Moreover, the price for the Turkmen natural gas will meet the market price, calculated on an international formula.

The most important part of Turkmenistan's long-term energy strategy is the east direction. In April 2006, the Turkmen and Chinese government signed a General Agreement to build a gas pipeline from Turkmenistan - China and to sell gas. This pipeline will be put into exploitation by late 2009. Under these arrangements, Turkmenistan will supply China with 40 billion cubic meters of gas per year for 30 years.

The Foreign Ministry reported the project is of strategic importance for both sides and meets the long-term interests of Turkmenistan and China and the logic of global economic development, in which the supply of energy play an increasing role. "In this regard, the project of the Turkmenistan - China pipeline is an example of genuine partnership based on equality, mutual awareness of the benefits for large-scale vision of prospects and opportunities that start with the practical implementation of the project. It is appropriate here also to note the proximity of the views of the two states on issues related to reliability and security of energy resource supply to world markets."

"At present Turkmenistan's interaction with states and companies in the energy supply is a two way street, the rules of which are common to all. They are defined by unbiased laws of the market, the real prices of hydrocarbons, based on the criteria of cost of production, as well as trends in the world market price," the ministry said.

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