By Sarah Lain
First published by The Diplomat, January 15, 2014
A country that could benefit from Russia’s cancellation of South Stream is Turkmenistan. A country that holds almost 10% of the world’s gas reserves, and is home to the globe’s second largest gas field, Turkmenistan certainly has enough gas to supply more markets. After various gas supply disputes with Russia, and a general weakening in geopolitical relations, there is no doubt the European energy security would benefit from a boost in supplies from Central Asia.
Recent steps indicate Turkmenistan is showing renewed signs of interest. In November 2014, Turkmengas signed a framework agreement with Turkey to supply the Trans Anatolian Natural Gas Pipeline project (TANAP), a section of the Southern Gas Corridor project, set to be completed by 2018. The project proposes to transport 16 billion cubic metres (bcm) of gas a year from Azerbaijan’s Shah Deniz II field in the Caspian Sea to Europe via Turkey, aiming to reach a capacity of 31 bcm by 2026.
There are very few details in the public domain about the Turkish-Turkmen deal. And it all sounds a bit familiar. It is not the first time that such a Turkish-Turkmen agreement to cooperate has been signed, and it is unclear if anything concrete has actually been decided.
Furthermore, there are many challenges to Turkmenistan’s participation in the project, the key one pertaining to the long-standing dispute over Continue reading