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TURKMENISTAN: ASHGABAT BUDDIES UP TO TEHRAN
8/06/09

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In energy affairs, it seems like Iran is Turkmenistan’s new best friend.

The TDH state-run news agency issued a commentary on August 5 that suggested Iran will be a more reliable export destination for Turkmen natural gas than Russia. The commentary touted the benefits of a new pipeline, due to begin operations in December of this year, connecting Turkmenistan’s Dovletabat gas field to Iran. The new route will have a projected annual capacity of 12.5 billion cubic meters of gas.

Recent Turkmen moves to expand energy cooperation with Tehran are "based on principles of diversified energy exports, mutual benefit, economic viability and healthy competition," the TDH commentary stated.

Iran is paying a "market price calculated on an international formula" and will want ever-growing amounts of fuel, the report added.

Russia meanwhile is struggling to find common ground with Ashgabat after Gazprom stopped buying Turkmen gas in late April. Sergei Shmatko, Russia’s Minister for Energy, insists negotiations are progressing but there is little to be seen for the initiative.

Turkmenistan is also stalling on announcing the winner of the East-West tender, a decision which could ultimately reveal where Ashgabat’s export intentions lie. The East-West gas spur is tentatively designed to link up with the Prikaspiiski pipeline, a Gazprom-controlled gas artery. But the spur could also be used to divert gas to Europe.

In a surprise move, Turkmenistan in late March threw the project open to bids from international companies. Prior to that announcement, Gazprom was widely seen as the overseer of the project. Observers tell EurasiaNet that if a Russian entity wins the tender, it would be a sign of a rapprochement between the Kremlin and Ashgabat.

Posted August 6, 2009 © Eurasianet
http://www.eurasianet.org


The Central Eurasia Project aims, through its website, meetings, papers, and grants, to foster a more informed debate about the social, political and economic developments of the Caucasus and Central Asia. It is a program of the Open Society Institute-New York. The Open Society Institute-New York is a private operating and grantmaking foundation that promotes the development of open societies around the world by supporting educational, social, and legal reform, and by encouraging alternative approaches to complex and controversial issues.

The views expressed in this publication do not necessarily represent the position of the Open Society Institute and are the sole responsibility of the author or authors.

 
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