Global economic recovery this year an increase of the energy resources consumption. In spite of the change of the pricing infrastructure — growth of gas costs in Asia and Europe, as well as economy decarbonization measures, the leasing research organizations still predict a considerable growth of global gas consumption in the medium and long term. Even in case of the significant development of the alternative energy, demand on gas will remain high, since this low-carbon fossil fuel is considered as the transitional one from coal to the renewable energy sources.
Turkmenistan has gas reserves, estimated to be the world’s fourth largest, and increases its production and export, as indicated in the data provided at the extended meeting of the Cabinet of Ministers on 3 December, 2021. Fulfilment of the plan for production of natural and accompanying gas has made up 121, 4 per cent, export of “blue fuel” by 132 per cent. As compared with the similar period of the past year, the growth rate by these indictors has been ensured relatively at the level of 122, 1 and 136, 7 per cent.
President Gurbanguly Berdimuhamedov stressed at the meeting of the government, that it is necessary to more efficiently realize production and export potential of the fuel and energy complex. At that, special attention it should be paid to the development of the processing industry for the expanding the range of the competitive products from the hydrocarbon raw material, being on demand on the domestic and foreign markets. Among the priorities – acceleration of the geological surveys, increase of the identified and proven hydrocarbon reserves, active attracting of foreign investments to the gas and chemical complex, increase in the rate of development of promising oil and gas deposits in the Caspian Sea, expansion of geography of export of Turkmen “blue fuel” to the foreign markets, construction of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline and others.
For the successful fulfilment of the obligations on the concluded sales contracts for the “blue fuel” in future, it was ordered to activate development of «Galkynyş» deposit, which hold one of the first places in the world in terms of gas reserves, and to provide production of additional volumes in other hydrocarbon deposits of our country. The growing demand on the Turkmen gas both in Central Asia and in other regions of Asia and Europe attest the urgency of the task. As is well known, in summer of this year the President Gurbanguly Berdimuhamedov and the President of Kyrgyz Republic Sadyr Japarov agreed to strengthen cooperation between the countries in the fuel and energy sector and ordered the respective structures to consider an issue of supply of the natural gas, electric power and liquified gas from Turkmenistan to Kyrgyzstan. The Prime Ministers of Kyrgyzstan and Uzbekistan discussed on 5 October the transit of the power energy and natural gas from Turkmenistan to Kyrgyzstan through the territory of the Republic of Uzbekistan.
The issue on supply of the Turkmen gas to the Kazakhstan market was discussed in October during the state visit of the President of Kazakhstan Kasym Jomart Tokayev to Turkmenistan. The head of the friendly state addressed to the President Gurbanguly Berdimuhamedov with the offer to consider an issue on delivery of the Turkmen gas to the Kazakhstan market, speaking in support of the opinion of the head of Turkmenistan about the significance of the planning, system approach to this issue.
Reached agreements with Azerbaijan and Iran on partnership in the production and transit of gas, promote the growth of gas production in Turkmenistan and diversification of its exports. It is a Memorandum of Understanding between Azerbaijan and Turkmenistan on joint exploration and development of Dostluk Field in the Caspian Sea, signed on 21 January of this year by the heads of MFA of two states in Ashgabat. In accordance with article 3 of the document the parties prepare the respective Turkmen-Azerbaijanian inter-governmental agreement.
As for cooperation of Turkmenistan and Iran in the gas sector, after the visit to Ashgabat, which hosted the 15th summit of ECO, the President Ebrahim Raisi said that one of the main results of his visit is the settlement of gas dispute with Turkmenistan. According to Press Service of the head of the Islamic Republic of Iran, the President stated, that the gas issue was discussed, which was earlier frozen, that eventually lead to signing the contract between Iran, Turkmenistan and Azerbaijan. According to document, the Turkmen gas will be supplied to Azerbaijan via the territory of Iran in volume of 1,5-2 billion cubic meters per year. The swap supply of the Turkmen gas to Azerbaijan through the territory of Iran will start from 22 December of this year. The trilateral agreement will help to prevent gas pressure decrease in the north and north-east province of Iran due to problems with infrastructure. According to the Iranian experts, the gas agreement between Azerbaijan, Turkmenistan and Iran has a significant political and economic importance and will benefit all parties.
The record price increase for the natural gas in Europe increased interest in the Trans-Caspian gas pipeline project and Turkmen gas supply. At the same time, предлагаются также more realistic and practical versions of gas supply from Turkmenistan to Europe are also proposed, which don’t need major investment, high volume of work and time consuming. In the international forum «Oil and Gas of Turkmenistan 2021», Alan Mustard, a former U.S. ambassador to Turkmenistan and co-head of the American company Trans-Caspian Resources (TCR), presented a Caspian Connector project – the pipelines to deliver natural gas from Turkmenistan's offshore fields in the Caspian Sea to Azerbaijan's existing energy infrastructure.
It is a simple project indeed, which in two years from the beginning of construction can allow Turkmenistan to export every year from 10 to 12 billion cubic meters of natural gas through Azerbaijan to Europe.
