Turkmenistan, Ashgabat, Dec.17 / Trend's H .Hasanov /
According to BP report, Turkmenistan ranks fourth in the world for natural gas reserves after Russia, Iran and Qatar.
BP in its report on the global energy sector said that Turkmenistan's proven gas reserves in 2011 totaled 24.3 trillion cubic meters, exceeding estimates for 2010 in the amount of 13.4 trillion cubic meters.
According to BP, last year Turkmenistan produced 59.5 billion cubic meters of gas or 40.6 percent more than in 2010. Last year, Turkmenistan's share of global natural gas production was 1.8%.
Gas consumption in the country in 2011 totaled 25 billion cubic meters or 10% more compared to the previous year.
The largest fields are located in the east of the country at "Southern Yoloten - Osman" (they were merged and renamed as "Galkynysh" and "Yashlar" with total resources valued by local geologists and British GCA at 26.2 trillion cubic meters.
Turkmenistan is able to export gas to China, Iran and Russia. Ashgabat sells gas on the border.
Discussed projects
This year, projected gas pipelines in Turkmenistan are selling additional product to Russia through the Caspian Sea, via Kazakhstan, Europe via the Trans-Caspian gas pipeline through the Caspian Sea and Azerbaijan and India through the Trans-Afghanistan via Pakistan.
Caspian Pipeline (Turkmenistan-Kazakhstan-Russia)
The Caspian gas pipeline's design capacity is estimated at 30 billion cubic meters per year. Gazprom may be the buyer. The company signed an agreement with Turkmenistan for supplies over the course of 25 years in 2003. The presidents of Russia, Kazakhstan and Turkmenistan signed an agreement on its construction in May 2007.
Project Status
The preparation of a feasibility study has been suspended due to geo-economic changes.
High-ranking representatives of Russia stated earlier that an agreement was reached to freeze the project. In turn, Turkmenistan stated that no negotiations were held.
Trans-Caspian Pipeline (Turkmenistan-Azerbaijan-Europe)
The design capacity of the 300-kilometer-Trans-Caspian pipeline through the Caspian seabed between Turkmenistan and Azerbaijan is linked to Europe's demand for Turkmen gas.
The Trans-Caspian project can become part of the "Southern Gas Corridor", designed to diversify gas supplies to Europe via different routes, including TANAP, Nabucco, Trans Adriatic pipeline or (Azerbaijan-Georgia-Romania Interconnector). Introduction of Turkmen gas in the European market can be carried out through Caspian Sea and Azerbaijan.
Project status
There is no direct agreement on the implementation of the Trans-Caspian gas pipeline yet. However, in September 2011 the European Union issued a mandate to start negotiations on an agreement between the EU, Azerbaijan and Turkmenistan on the Trans-Caspian project.
Ashgabat believes that consent of the parties (Turkmenistan and Azerbaijan), territory of which is covered by the project, is enough to lay pipeline through the seabed of the Caspian Sea, legal status of which has not been yet determined. Azerbaijan expressed its willingness to provide its territory, transit opportunities and infrastructure to implement the project. Representatives of the State Oil Company of Azerbaijan (SOCAR) made this statement recently.
Turkmenistan announced its readiness to supply 40 billion cubic meters of gas per year to Nabucco, 10 billion of which can be provided by Malasyian Petronas that operates in the Turkmen section of the Caspian Sea. The remaining volume may be provided by a1000-km-long East-West gas pipeline, which is under construction in the country and originates from the Southern Yoloten field, and finish in the Caspian Sea coast
Trans-Afghan gas pipeline (Turkmenistan-Afghanistan-Pakistan-India)
The design capacity of the Trans-Afghan gas pipeline is 33 billion cubic meters of natural gas per year. The estimated length reaches 1735 kilometers. It is expected that the pipeline will extend from the largest gas field in Turkmenistan 'Galkhynysh' through Afghan cities of Herat and Kandagar to Fazilka settlement on Pakistani-Indian border.
Project Status
The basic document to advance the TAPI project is an inter-state agreement to start the implementation of TAPI and came into effect with a high profile signing in Ashgabat in December of 2010. Instability in transit to Afghanistan remains as a serious obstacle, but Kabul states that it can ensure the safety of the route.
TAPI is currently at an important stage of development. In May 2012, agreements were signed regarding the sale of gas between the Turkmen government, the Indian GAIL ltd and the State Gas Systems of Pakistan. A Memorandum of Understanding was signed with Afghanistan.
Negotiations on formation of consortium and financial packages are being held at this stage.
The Turkmen side conducted several international road shows for TAPI in September 2012 with the participation of the Asian Development Bank (ADB). It was reported that Chevron, Exxon Mobil, BP, BG Group, RWE, Petronas and other companies expressed intentions to participate in the project. According to Indian sources, the Shell Company is also interested in the project.
Bangladesh wants to join TAPI as a buyer. South Korean Korea Gas Corporation (Kogas) voiced offers on the TAPI in Ashgabat.
Russia showed an interest in the project, its implementation is also supported by the U.S., which was against a similar project from Iran to Pakistan.
Buyers are Pakitani and Indian gas companies.
Existing routes:
Central Asia- Center Gas Pipeline (Turkmenistan-Uzbekistan-Kazakhstan-Russia)
The Central Asia-Center gas pipeline was put into operation in late 1960 with a capacity of 80 billion cubic meters per year. Over time, the pipeline's power was reduced down to 40-50 billion cubic meters per year. Reconstruction is necessary.
Gazprom, the company buying the gas, signed an agreement with Turkmenistan for gas supplies for a 25 year span in 2003.
Project Status
At present, the Central Asia-Center Pipeline does not operate at full capacity. Russia suspended Turkmen gas imports in April 2009 due to an accident. Technical issues have been resolved, but global recession forced Russia to reduce its purchases to 10 billion cubic meters of gas in 2010, four times less than 2008 figures.
Last year it became possible to supply Russia with raw materials not only from the eastern fields of Turkmenistan, but also from the west, thanks to the construction of a connecting branch from the Caspian Sea coast, where Petronas can begin industrial gas production on the offshore block.
Trans-Asian Pipeline (Turkmenistan-Uzbekistan-Kazakhstan-China)
The pipeline was put into operation in December of 2009, with a design capacity of 40 billion cubic meters per year. Recently an agreement was signed in Beijing to increase purchases up to 65 billion cubic meters of gas. The construction of additional facilities is required.
The Chinese company CNPC is the buyer. The company concluded an agreement with Turkmenistan on gas supplies.
Project status
According to Turkmen and Chinese experts, starting early 2010 and until the end of this year, the volume of Turkmen natural gas supplied to China will reach 44 billion cubic meters.
Last year, Turkmen gas was sent to the pipeline system of Guangdong Province - one of the most populous and fastest growing regions in China, located on the Pacific coast.
Korpeje-Kurt-Kui Pipeline (Turkmenistan-Iran)
The pipeline was commissioned in December 1995. Today, its capacity has reached 8 billion cubic meters per year.
Project Status
Its potential capacity can be increased to 14 billion cubic meters. The National Iranian Gas Export Company is the buyer.
Dovletabad-Sangbast Pipeline (Turkmenistan-Iran)
The Serahs- Dovletabad Pipeline (to the Iranian border) with a capacity of up to 6 billion cubic meters a year was commissioned in late December 2009. The accompanying branch in Iran from Serahs to Hangeran through Sangbast was opened in November 2010.
Project Status
The buyer of gas is the National Iranian Gas Export Company. There is a potential to increase the pipeline's capacity by twice.