China may replace Russia as gas partner for Turkmenistan

China may replace Russia as gas partner for Turkmenistan

Baku, Azerbaijan, July 13

By Aygun Badalova - Trend:

Much of Turkmenistan's future stability will hinge on the specific partner that will replace Gazprom, who was recently declared by the Central Asian country as an insolvent one, Luca Anceschi, lecturer at the British University of Glasgow believes.

"Much of Turkmenistan's future stability will hinge on the specific partner that will replace Gazprom. It might be China, but I think that it is in the interest of the Turkmen government to finalise as soon as possible a new set of energy deals with other partners, located in both Asia and the West," Anceschi told Trend on July 13.

Recently Turkmenistan said that Russia's Gazprom has become insolvent on its contracts for sale and purchase of natural gas due to the ongoing world economic crisis and the economic sanctions imposed on Russia by the West.

Gazprom JSC hasn't paid its debts to Turkmengaz state concern for the supplied gas since early 2015, according to Turkmenistan 's Ministry of Oil and Gas Industry and Mineral Resources.

Anceschi said that the energy partnership between Turkmenistan and Russia has always been controversial.

"Progress in deal re-negotation or price recalculation has been usually accomplished through the eruption of crises, as it indeed happened in 2003 and 2008," he said.

The current spat between Turkmengaz and Gazprom might somehow replicate this pattern, he added.

Anceschi believes, on the one hand, Gazprom has certainly seen its potential limited by the sanctions imposed on Russia. On the other, Turkmengaz's declaration captures the extremely poor juncture experienced by this energy relationship.

Anceschi also noted that used to buy more than 40 billion cubic meters of Turkmen gas not long ago. Gas volumes traded are currently marginal, with 4-5 bcm purchased in 2014 and a similar quota project for this year.

Russia gets Turkmen gas via the Central Asia - Center pipeline, transited through Uzbekistan and Kazakhstan. Gazprom acts as a buyer. It signed an agreement on gas supplies with Turkmenistan for 25 years in 2003.

At this stage, the Central Asia - Center pipeline does not fully operate. Russia temporarily stopped importing Turkmen gas because of the breakdown in April 2009. The technical issues were resolved. Under the influence of the global recession, Russia has reduced purchases to 10-11 billion cubic meters of gas since 2010, which is four times less than earlier.

The annual volumes dropped by 2.5 times in 2015 and stood at 4 billion cubic meters.

Currently China the biggest importer of Turkmen gas. In 2014, Ashgabat exported 25.9 bcm to China. By 2017, the capacity of the system from Turkmenistan to China is expected to increase to 80 bcm of gas, and by the end of 2021, Turkmenistan will annually supply 65 billion cubic meters of gas under the agreement signed between China National Petroleum Corporation (CNPC) and Turkmengaz.

---

Aygun Badalova is Trend Agency's staff journalist, follow her on Twitter: @AygunBadalova

Export of cars from Turkey to Tajikistan down
Export of cars from Turkey to Tajikistan down
Uzbekistan, Tajikistan agree on resumption of flights
Uzbekistan, Tajikistan agree on resumption of flights
Tajikistan's import of Turkish furniture down
Tajikistan's import of Turkish furniture down
Loading Bars
Latest
Azerbaijan's Defense Ministry calls on civilians in occupied territories to stay away from military facilities
Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Iran declares amount of loans issued to housing & construction sector
Armenia continues to use underage children in military hostilities (VIDEO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
President Ilham Aliyev on political objectives of Armenian military attack on Azerbaijan
In center of Baku, there is Armenian church, but mosques on occupied territories were destroyed - President Aliyev
With Georgia our relations are excellent, says Azerbaijani president
Armenian government should not try to frighten its population with Turkey - President Aliyev
And after war with Armenia stops, political settlement enforced, role of Turkey will be very important, very positive - President Aliyev
Wounds of war must be healed by political wisdom, by political will - President Aliyev
Armenian government should understand that they are not now in position to dictate - President Aliyev
Best way for future of Karabakh - to live in peace in harmony, try to become good neighbors again, says President Aliyev
Unlike Armenia, from Russia we buy weapons, we pay for them, says Azerbaijani president
Turkey is not involved in the conflict at all - Azerbaijani president
If Armenia didn’t violate ceasefire today clashes would have stopped - President Aliyev
We cleaned completely the Azerbaijani-Iranian border from Armenian occupants, and there will be no more inconvenience for our brothers across river of Araz in Iran - President Aliyev
If Armenia do not stop, we will go until end to liberate all occupied territories - Azerbaijani president
Azerbaijan became already regional hub for not only for energy, but also for transportation - President Aliyev
Armenia - occupier, it obliged to liberate territories of Azerbaijan - Lebanese political scientist
Loans of dead servicemen and persons affected by hostilities to be repaid in Azerbaijan
Recep Tayyip Erdogan: Azerbaijan begins to return its lands
Religious confessions of Azerbaijan demonstrate solidarity in fight against Armenian terror (VIDEO)
65 Azerbaijani civilians, including women, children, killed since beginning of Armenian provocation - Prosecutor General's Office
State-controlled international television and radio network Voice of America apologizes for its mistake (PHOTOS)
Russian Embassy in contact with family of teenager who died as result of Armenian shelling
Azerbaijani flag to be raised in Shusha, Agdere and other lands - MoD
Armenia gives updated list of its soldiers killed in Nagorno-Karabakh conflict zone
Weekly overview of Azerbaijan's financial market
Attacks by Armenia on territory of Azerbaijan - another act of military aggression, says Azerbaijani top official
Teenagers honor memory of Russian citizen who died as result of Ganja shelling by Armenian Armed Forces (PHOTO)
Iran discloses amount of loans issued to industrial and mining sectors
Iran reveals amount of loans issued to agricultural sector
Iranian Energy Exchange announces products to be on sale October 25
Buy/sell operations at Iran Mercantile Exchange decrease
Armenian army’s another combat UAV destroyed by Azerbaijan
Azerbaijan Air Forces destroy military equipment, infrastructure of Armenian troops
Armenian attempts to attack Azerbaijani army units suppressed
New data on Azerbaijani civil casualties, damages from Armenian attacks revealed
Azerbaijani military servicemen act within framework of int'l law - MoD
Terrorist acts against ancient city of Ganja target not only civilian population, but also historical monuments
Argentina extends COVID-19 restrictions until Nov. 8
Armenian terror walks streets of France - Lebanese legal expert
Azerbaijan confirms 220 more COVID-19 recoveries
Air Defense of Azerbaijan shoot down combat aircraft of Armenian Air Force
Reserves of Azerbaijan's Kalbajar region deposits to be re-examined, evaluated
Eight schoolchildren killed, 16 injured due to Armenian terror - Azerbaijan's Ministry of Education
Iran reveals its COVID-19 data for October 24
Azerbaijan fighting misrepresentation of its occupied territories on maps
Armenia shelling Azerbaijan’s Lachin and Gubadli districts from its territory
Import of Uzbek products into Azerbaijan increases
Value-added taxes paid by private sector down in Georgia
Volume of loans issued in Iran increases
Turkmen Ministry of Construction extends tender for construction of checkpoints
Unexploded missile on territory of Azerbaijan’s Goranboy (PHOTO)
Uzbekistan Airport announces tender for water pumps repair
Socio-economic issues in Azerbaijan - in center of attention during COVID-19 - Ali Ahmadov
Expert talks about sanctions against Armenia
Armenia must put end to attacks, illegal occupation of Azerbaijan's territory - Turkish Defense Ministry
Weekly review of events in Azerbaijani agricultural sector
Uzbekistan increases textile products manufacturing
Turkmen Health Ministry to purchase medical equipment via tender
Uzbek-Korean JV announces tender on transport services
Weekly review of Azerbaijan's precious metals market
Azerbaijan informs Russian embassy about Russian citizen killed by Armenia's attacks
Uzbek-Korean Uz-Kor Gas Chemical to buy filters via tender
Azerbaijani diaspora youth actively taking part in media fight against Armenia
Assistant to Azerbaijani president talks teenager killed due to Armenian terror (PHOTO)
Number of online payments reach record high in Georgia
Int'l financial institutions eye to provide assistance to Uzbekistan’s energy sector
Georgia’s coronavirus cases reach 26,503
Armenians barbarously exploited mineral deposits in Zangilan - Azerbaijani Ecology Ministry
Armenia at state level continues terror attacks on Azerbaijani civilians – assistant to president
Azerbaijani oil prices down
Teenager in Azerbaijan's Ganja city dies from wounds following Armenia's missile attack
Salt production growing in Turkmenistan
Uzbekistan's Ministry of Internal Affairs announces tender on equipment supply
Volumes of cargo transshipment from Algeria through Turkish ports revealed
Armenia shelling Azerbaijan’s Gubadli district by using artillery installations
Armenia's missile fire on Azerbaijan's Tartar kill 16-year old teenager - top official
Iran expects to expand oil barter with necessary goods
Azerbaijan's Naftalan, Tartar under heavy fire from Armenian troops
Georgia reveals ATM transaction statistics
Azerbaijani Armed Forces destroy military equipment of Armenia (VIDEO)
Azerbaijani Bar Association appeals to world's lawyers
Armenia's political leadership now has to take several difficult steps - Russian expert
Uzbekistan, China in talks over co-op in IT sphere
Weekly review of Azerbaijan's currency market
Armenian Armed Forces shelling settlements in Azerbaijan’s Tartar and Barda
Turkmenistan to expand its network of trading houses
Armenian armed forces firing at Azerbaijani territories in Goranboy-Naftalan direction
Armenian gov't using visit of German MPs to Nagorno-Karabakh region for propaganda
Azerbaijani president gives interview to Le Figaro newspaper (PHOTO)
OIC 'struck with astonishment' at unexpected discourse from certain French politicians
Ukraine puts Georgia on list of 'red zone' countries
Uzbekistan reveals its COVID-19 data for October 24
Turkmenistan to expand co-o with Italian company for purchase of equipment
Azerbaijan destroys Armenian strongholds, takes over important heights - MoD
Azerbaijan destroys Armenian army’s combat UAV (PHOTO)
Total assets of Bank of Baku increase
All news