The pipeline intended to forge a new export route through Afghanistan for Turkmenistan’s natural gas riches has made a fresh stride with the naming a consortium leader for construction.
Turkmenistan’s state news agency reported on August 6 that state-owned Turkmengaz will be in charge of bringing TAPI — named for the initials of the four countries it crosses — into existence.
The decision was taken during a TAPI management committee meeting in Ashgabat, the Turkmen state news agency reported. Senior officials from the Asian Development Bank, which is acting a transaction adviser on the project, were also in attendance.
“In its capacity as leader of the consortium of the TAPI Limited pipeline company, Turkmengaz will head coordination on construction, financing, management and use of the TAPI pipeline,” said an official statement cited by the state news agency.
Backers of the project, which include the United States and the European Union, appear to be unfazed by occasional and loosely sourced reports of unrest along the Turkmen-Afghan border that would stand to disrupt any major construction work. Security issues do not typically feature in official statements on TAPI, which suggests either that anxieties are overblown or that the parties to the project are simply hoping for the best.
The statement notes that Turkmengaz has more than 50 years experience in the development and transportation of gas resources, as well as in the construction of pipelines. But it also notes hopefully that other large companies will join the consortium as the project moves forward.
Turkmenistan’s leader Gurbanguly Berdymukhamedov has flown to Kyrgyzstan with promises of enduring friendship and, on a more practical note, supplies of cheap electricity.
As ever though, natural gas was being discussed as Turkmenistan presses forward in its program to create as many export routes for its fuel as possible.
Speaking after talks in Bishkek on August 5, Kyrgyz President Almazbek Atambayev was fulsome in his gratitude for commitments that are still only notional.
“I want to thank you for your brotherly word about Turkmenistan’s readiness to deliver electricity at very low prices. I think that all the issues to do with its transportation will be settled,” he told his guest.
Easier said than done given the not inconsiderable issue of Uzbekistan, which lies between the two countries. Tashkent has historically proven an unreliable transit nation for power deliveries. In 2009, Uzbekistan interrupted electricity supplies from Turkmenistan to Tajikistan when it pulled out of the Soviet-engineered power grid that links Central Asian nations.
Ashgabat committed in 2013 to investing $5 billion over a seven year period into increasing its export capacity fivefold, so it should on paper have enough to go around. It is unclear, other than sheer brotherliness, why Turkmenistan would commit to subsidizing Kyrgyzstan’s notoriously inefficient electricity system.
Any Kyrgyz government unwilling to countenance political unrest will consider raising electricity tariffs at their own peril.
Iranian President Hassan Rouhani tried to end uncertainty about Iran’s desire for Turkmenistan's gas during his first official visit to the gas-rich Central Asian country on March 11, promising an unspecified increase in imports.
Over the last few years, at least in terms of gas, Turkmenistan’s relationship with Iran has been second only to its relationship with Russia in volatility. Tehran makes occasional noises about boosting domestic production and doing away with a tiresome trade pickled with disputes.
But during his visit Rouhani confirmed that the Islamic Republic would up imports from Turkmenistan.
That must be music to Turkmen President Gurbanguly Berdymukhamedov’s ears. The Turkmen economy has been struggling on the back of the sharp downturn in Russia and the slumping ruble; moreover, Moscow suddenly slashed imports of Turkmen gas last month.
Referring to increased transport links with Turkmenistan, such as the new Kazakhstan-Turkmenistan-Iran railway, Rouhani set an ambitious target for bilateral trade to grow by more than 15 times from its current $3.7 billion to $60 billion by 2020, his official president.ir website cited him as saying.
For his part, Berdymukhamedov was also effusive: “In recent years, given the growing cooperation in different fields, bilateral ties between Tehran and Ashgabat have taken on a new meaning,” said the Turkmen president, who also called Rouhani a “brother” in comments picked up by AFP.
Four months after announcing it would slash the amount of gas it buys from Turkmenistan and Uzbekistan, Russian energy behemoth Gazprom has revealed the extent which its imports from Central Asia will fall this year.
On February 3, Vice Chairman Alexander Medvedev told an investment summit in Hong Kong that this year Gazprom will import two-fifths of the 10 billion cubic meters (bcm) it imported from Turkmenistan in 2014; it will buy less than a quarter of the roughly 4.5 bcm it bought from Uzbekistan last year.
Medvedev said the decisions had the blessings of both Central Asian states, while boasting that his company came to the agreements from a position of strength.
“For Gazprom, thanks to investment in extraction and transport infrastructure, there is no technological necessity for the purchase of foreign gas,” Medvedev said in comments picked up by state-run RIA Novosti. “Gazprom is in the situation to guarantee both the domestic demand in any region of the Russian Federation, and the delivery of gas to our customers in Europe, and in the future, Asia, with our own resources.”
The announcement came just hours before Moscow said Foreign Minister Sergei Lavrov would make a rare stopover in Ashgabat.
Kyrgyzstan’s problems probably featured pretty low on Vladimir Putin’s to-do list when he traveled to Tashkent this week.
Some in Kyrgyzstan believe the Russian president, and only he, can end their country’s intractable disputes with its neighbor. There was hope, for example, that Putin could get Karimov to resume gas supplies to southern Kyrgyzstan.
Though Putin had a nice package of goodies for his Uzbek counterpart on December 10 – he wrote off most of Tashkent’s debt and showed support only a few months before Karimov is expected to stand for reelection – it is unclear what he got for Russia.
Per usual, Karimov ducked a press conference. And he did not publically opine on the elephant in the room: Tashkent’s future role, if any, in relation to Putin's Eurasian Economic Union.
One of the items supposedly on the agenda, however, was gas.
The standoff in the Fergana Valley directly involves Russia. Russia’s Gazprom had just taken control of Kyrgyzgaz in April when UzTransGaz said it had no obligation to supply Gazprom. Kyrgyzstan’s second-largest city has been without gas ever since.
The meeting failed to produce a breakthrough, Kyrgyz media reported.
Many analysts assume Uzbekistan is using gas to gain leverage over its poverty-stricken upstream neighbor as well as that neighbor's benefactor—Russia.
Iran, it seems, was calling Turkmenistan’s bluff earlier this summer when Tehran said it no longer needs gas from its northern neighbor. Now a top official says Tehran will keep buying.
That is good news for Turkmenistan, which is so dependent on its main gas customer, China, that it is starting to look like a client state.
Iran is committed to increasing its own domestic gas production to up to a billion cubic meters per day by 2017, a target one industry analyst thinks is possible but unlikely within such a tight timeframe. But supplying Iran’s northern regions with domestic gas is complicated by its lack of infrastructure. So, since 1997, Iran has bought gas from Turkmenistan to service its north, and sold its own gas abroad.
Deputy Oil Minister Hamid Reza Araqi said this week that his boss and Turkmen President Gurbanguly Berdymukhamedov had met in Ashgabat this month to hammer out a new purchase agreement. According to regional news agency AKIpress, the meeting happened November 7.
“The deal makes it possible to raise the amount imported from Turkmenistan in cold months of the winter; starting in the beginning of the current year, Turkmenistan has exported 24-25 million cubic meters of natural gas to Iran [daily],” said Araqi, in comments carried in English by Iran’s Mehr news agency on November 19.
The agreement contains a provision to increase this to 30 million cubic meters daily, he added.
Turkmenistan has the world’s fourth-largest natural gas reserves and exports billions of dollars worth of gas every year. But its copious reserves are apparently not enough to ensure a stable supply for residents of this isolated, totalitarian country.
Shortages in northern villages prompted a rare protest on October 28, reports the Chronicles of Turkmenistan, a news website run by exiles. Several dozen women blocked a highway to draw officials’ attention to the shortages, which come with the onset of autumn and are affecting residents’ ability to heat their homes and cook. The shortages, says Chronicles, have even hit Dashoguz, a town of about 200,000 people:
Residents have repeatedly called on gas providers [for help], but the latter complain that very little gas is being delivered; moreover, the pipes and equipment are very run-down, while specialists capable of maintaining all this in working order are simply nowhere to be found. The authorities are not providing either the funds or the pipes to repair gas mains.
Dushanbe and Beijing have launched construction of a key gas pipeline that will turn Tajikistan into a transit country for Central Asian gas supplies to neighboring China, the world’s largest energy consumer.
The pipeline will lock Tajikistan into an energy partnership with its powerful neighbor from which the former Soviet Union’s poorest country will reap millions of dollars every year in transit fees.
The project has “immense political, economic, and historical significance,” Tajik President Emomali Rakhmon said at the groundbreaking ceremony on September 13. His visiting Chinese counterpart, Xi Jinping, described the pipeline as a “symbol of China-Tajikistan friendship.”
The link will supplement the existing Central Asia pipeline running from Turkmenistan to China via Uzbekistan and Kazakhstan. The new section bypassing Kazakhstan and passing through Kyrgyzstan and Tajikistan, known as Line D, will increase the pipeline’s overall annual capacity by 30 billion cubic meters, to around 85 billion. Like the other lines, it will also pass through Uzbekistan.
Tajikistan will host the longest section of the new 1,000-kilometer spur, with 400 kilometers passing through its territory. China will pick up the $3.2 billion price tag for that leg.
Beijing is already ramping up gas supplies through the existing Central Asia pipelines. A third line known as Line C started pumping from Turkmenistan in May, almost doubling the pipeline’s overall annual capacity to 55 billion cubic meters.
The Darvaza Crater, an infernal pit burning in Turkmenistan’s forbidding Karakum Desert, has long piqued the curiosity of the few tourists who make it into the totalitarian country. Now it turns out that the famous furnace – the product of a search for natural gas gone horribly wrong – could be an untapped store of knowledge for mankind.
Being the product of an accident, the “Door to Hell” is perhaps not what the image-conscious dictator of gas-rich Turkmenistan wants his country to be known for, but it has been getting a lot of attention lately.
Recently it attracted one explorer who likes to live on the edge. According to a July 16 story by National Geographic, last November “explorer and storm chaser” George Kourounis became the first person to descend into the bottom of the 99-foot-deep fiery pit, where he collected soil samples.
The history of the hotspot is somewhat contested, but most agree that the hole was the result of a Soviet gas expedition. As a Turkmen geologist told the AFP last month:
Soviet geologists started drilling a borehole to prospect for gas at this spot in 1971. The boring equipment suddenly drilled through into an underground cavern, and a deep sinkhole formed. The equipment tumbled through but fortunately no one was killed. Fearing that the crater would emit poisonous gases, the scientists took the decision to set it alight, thinking that the gas would burn out quickly and this would cause the flames to go out.
Gazprom was supposed to end Kyrgyzstan’s gas shortages and contract disputes with its neighbors. Instead, since the Russian energy giant took control of Kyrgyzstan’s bankrupt gas company almost two months ago, the country has faced one of its worst gas crises in memory.
The immediate cause of the shortage is Uzbekistan. The Uzbek state gas supplier, Uztransgaz, closed the taps on April 14, leaving an estimated 60,000 households in southern Kyrgyzstan without gas. Kyrgyz leaders are now proposing solutions that are likely to get Uzbekistan’s attention, but could prove risky.
The problem appears to have started on a technicality: Shortly before Kyrgyzgaz handed control of its debt-ridden gas network to Gazprom, its supply contract with Uzbekistan ran out. Uztransgaz agreed to add two more weeks, to April 15, but who were they supposed to negotiate with? The now-defunct Kyrgyzgaz? Gazprom? Gazprom’s new local subsidiary Kyrgyzgazprom?
That question lingers, but after almost two months it sounds like the Uzbeks are not keen to talk.
Deputy Prime Minister Valery Dil says he has tried multiple times to reach his Uzbek counterparts, yet they ignore him. Prime Minister Djoomart Otorbaev has also complained he can't get anyone in Tashkent to take his calls.