Agreement on Trans-Caspian gas pipeline to create legal framework for its implementation

Oil&Gas Materials 26 June 2012 13:24 (UTC +04:00)

Turkmenistan, Ashgabat, June 26 / Trend H.Hasanov /

A tripartite agreement between Europe, Turkmenistan and Azerbaijan will be an important step in creating a legal framework for the implementation of the large scale joint project to construct the Trans-Caspian gas pipeline, the Turkmen government said.

This report was distributed after the meeting of the Turkmen leader with the head of the EU delegation Aurelia Bouchez, who is in Ashgabat.

"The EU welcomes and supports the role of Turkmenistan in expansion and strengthening of energy security by diversifying energy transit routes through Central Asia," a statement quoted Bouchez as saying.

It is also noted that the major focus of efforts of Turkmenistan and the countries of the European Union is consolidation of peace and the global system of general security, including energy security.

Cooperation in the fuel and energy sector 'is due both to increasing demands for energy in the EU, as well as the position of Turkmenistan successfully implementing a strategy to create a multi-optional system of bringing its energy resources to world markets and advancing in this regard a number of important energy projects designed to deliver a rich resource potential of the country to the global community', the governmental statement said.

The meeting also discussed issues of regional and international policies of mutual interest.

Such companies as Chevron, Exxon and General Electric have already opened their representative offices in Ashgabat. At this stage they are exploring the local context. One of the Nabucco shareholders, German RWE, has contracts with the Turkmen government. Talks are on-going with Eni, BP, Shell, ConocoPhillips and others.

Hoping to cooperate with the EU in energy field, Ashgabat has already taken some concrete steps. In particular, Ashgabat promised to bring to its borders up to 40 billion cubic meters of gas annually, which may in future be delivered to the EU.

Of this amount, 10 billion cubic meters can be provided by Malaysian Petronas working on offshore block of Turkmenistan. To supply the remaining 30 billion cubic meters Turkmenistan is building the East-West gas pipeline that will connect the second largest Galkynysh gas field in the world in the east towards the Caspian coast.

The Turkmen President on the latest Caspian Sea summit in Baku said that the building pipelines under the Caspian Sea is an issue of principle for Ashgabat. He noted that "Turkmenistan is firmly convinced that the laying of an underwater pipeline in the Caspian Sea can be done only with the consent of the parties, through the bottom areas of which such a pipeline will be built."