Source: Caspian gas pipeline becomes relevant

Oil&Gas Materials 19 April 2010 16:17 (UTC +04:00)

Turkmenistan, Ashgabat, April 19 / Trend H.Hasanov /

Regional project to build a Caspian gas pipeline that will run along the eastern coast of the Caspian Sea from Turkmenistan to Russia again becomes relevant, a Turkmen official source reported.

This can be judged by the statements of the Turkmen fuel and energy complex's top managers and speakers from Russia during the recent Ashgabat International Gas Congress, the source reported.

The pipeline's annual capacity should be around 30 billion cubic meters of gas, distance - 1,700 miles, most of which must pass through Kazakhstan to Russia's borders. The project's estimated value, including related infrastructure, is expected around $5-$7 billion.

"The Caspian Sea pipeline is a project of regional and global importance initiated by Turkmenistan to diversify routes to deliver its energy resources to the world markets," the source added.

Background paper on the project was signed in Moscow in December 2007. It confirmed the interest of Turkmenistan, Kazakhstan and Russia to steadily increase the strategic interaction in the gas field.

Then sides identified the main characteristics and the project timetable, fixed joint commitment of the participating countries interested in increasing the capacity of major gas transmission system.

For some time the Caspian project was on the back burner after the spring of 2009, Russia suspended imports of the Turkmen gas via the traditional route - Highway Central Asia-Center through Uzbekistan, Kazakhstan and Russia. Earlier this year, purchases have been restored, but in smaller quantities and at a reduced price, new terms were dictated by the decreased demand in the markets because of the global economic crisis.

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