Ashgabat, Berlin discuss cooperation over oil and gas
Turkmenistan, Ashgabat, April 25 /Trend H.Hasanov/
The Turkmen-German working group on trade and economic cooperation has been discussing prospects of cooperation in the energy sector during a meeting held in Ashgabat, the newspaper Neutral Turkmenistan said on Thursday.
'It is known that Turkmenistan has enormous natural gas reserves and is implementing a strategy to expand export routes for supplies of fossil fuels in various directions, including into Europe', the article said.
Currently delivery of equipment and materials for the oil and gas industry is implemented in accordance with contracts signed with the German side.
Germany is significantly represented in the local market of the oil and gas industry. Such projects as the construction of installations for the production of lubricating oils and paraffin wax treatment plants of diesel fuel from water at the oil refinery in Turkmenbashi and the construction of a gas compressor station in Korpejewas were previously carried out.
Cooperation with one of the leading traders of natural gas to the European Union market, RWE has been established. The Production Sharing Agreement (PSA) on the development of offshore fields in the Turkmen sector of the Caspian Sea and the transportation of Turkmen gas to Europe is signed alongside.
In April 2009 the government of Turkmenistan signed a long term memorandum with the company which is a shareholder of the Nabucco gas pipeline project. Hydrocarbon resources of the country can be connected to the transnational communication via the Caspian Sea, through the construction of a small branch (300 kilometres) along the bottom of the sea to the coast of Azerbaijan.
Europe hopes to diversify sources of gas consumption s significant portion of which at this stage is provided by Russia, due to Caspian resources.
Ashgabat regularly asserts its right of direct access to Europe which has been closed by supplies through Russian pipelines and Iran until recently. The country receives access to a new alternative at the end of 2009 due to gas pipeline launch to China.