Weekly economic review (April 27-May 1)

Analysis Materials 5 May 2015 11:24 (UTC +04:00)

EU holds urgent talks on Trans-Caspian pipeline

Ashgabat holds multilateral meetings at the government level with the participation of high-ranking delegation of the European Commission, where the possibility of Turkmen gas supplies to Europe was discussed.
While anticipating the resources of the Caspian region, especially from Azerbaijan and Turkmenistan, the EU has actively promoted the Southern Gas Corridor project. A project for the Trans-Caspian gas pipeline construction can be a part of it.

Laying the pipe through the Caspian Sea from the city of Turkmenbashi in Turkmenistan to the city of Sangachal on the coast of the Absheron Peninsula in Azerbaijan is expected to be one of the variants of this route.

Turkmenistan is one of the key players on the energy market in the Caspian region and Central Asia. It is interested in searching for new markets, particularly in Europe.

In this aspect, the pipeline route to Europe via the Caspian Sea and Azerbaijan is considered one of the most attractive ones.

In its turn, Brussels has recently announced that it is time for the European companies, directly interested in Turkmen gas import, to join the negotiation process. The Caspian Development Corporation, which is being established, can serve this goal.

The RSK Environment Ltd. carried out the preliminary environmental studies on the World Bank's order.

The examination confirmed that from the environmental point of view, the Trans-Caspian Gas Pipeline is a safe route, and today, Turkmenistan and Azerbaijan have every opportunity to implement the project for its construction as part of bilateral activities.

The deposits of the Turkmen sector of the Caspian Sea may be the resource base for the gas supply via the Trans-Caspian Gas Pipeline at the initial stage. The presence of the already explored and proven natural gas reserves in the Turkmen sector of the Caspian Sea makes it possible to supply 16 billion cubic meters of gas per year in Europe.