JAN. 8 2016 (The Conway Bulletin) – Turkmenistan completed its $2.5b East-West Pipeline, a project with a stated objective of making gas available for export.
The pipeline can transport around 30b cubic metres of gas to the Turkmen Caspian shore and it could then potentially be linked to a Trans- Caspian Pipeline which connects to another pipeline system to Europe.
But, and this is the catch, there is no plan to build a pipeline across the Caspian Sea to Azerbaijan from Turkmenistan. It’s a big catch and must be causing policymakers in Turkmenistan to lose sleep.
There is neither an agreement nor funding ready for a trans-Caspian link and bringing gas to the western part of Turkmenistan doesn’t necessarily mean it will continue to Europe.
The Turkmen government hailed the East-West Pipeline as a step towards Europe, but it could be Turkmenistan’s White Elephant. The East- West Pipeline was planned and commissioned during the height of the hype of building a trans-Caspian pipeline. With low oil and gas prices, the world is a very different place today.
ENDS
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(Editorial from Issue No. 262, published on Jan. 8 2016)