Ï Creation of export pipeline system as major attainment of Turkmen economy
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Creation of export pipeline system as major attainment of Turkmen economy

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Besides solution of issues of state construction and selection of foreign policy important for young Turkmen state that gained its independence 25 years, there was the development of economy. Owing to availability of huge natural resources, particularly gas reserves, the Turkmen practically have not their own export infrastructure. As the British expert Shirin Akiner writes in the article “Pipeline strategy of Turkmenistan”, “At the beginning of the nineties, former Soviet Republics remain to be the basic consumers of Turkmen gas. Most of these new states, particularly Armenia, Georgia and Ukraine, experienced a deep recession, and were often unable to pay for delivery, increasing their debt. By the end of 1995, the debt to Turkmenistan reached 2 billion US dollars.” Therefore, as President Gurbanguly Berdimuhamedov notes in his book “Neutral Turkmenistan”, “taking into account the financial problems in Ukraine, Georgia, Armenia and some other countries - consumers of Turkmen gas, we in fact played in the nineties the role economic donor of our partners.”

In these conditions, the country began to develop plans on creation of multi-vector network of export routes for its “blue fuel” to different regions of the planet that was characterized by Shirin Akiner as “bold and ambitious.” Such difficulties as long distances to world markets, technical problems of construction of pipelines through impassable areas, regional instability and other political factors along the way of cross-border transportation of hydrocarbons made doubt most of them in implementation of these plans, but could not stop the government of Turkmenistan.

According to the British expert, “despite the disappointment of protracted negotiations, memorandums of intent, canned technical and economic researches and frequent breaks, the Turkmen slowly and persistently advanced towards their goals.” And if “at the beginning of the nineties, the plan Turkmenistan on creation of a network of export pipelines seemed to be fantastic - too many obstacles had to be overcome,” then “by 2015, the picture turned out completely different.” Today, many international experts agree with the words of Shirin Akiner that “Turkmenistan is recognized as one of main suppliers of energy resources to international markets.”

Tracing the history of construction of large gas pipeline from Turkmenistan to China and Iran, “real progress” of TAPI, this author emphasizes: “The main achievement of the pipeline strategy of Turkmenistan during these years has been to overcome the country's dependence on needs and whims of only user through the development of diversified range of export options.” Along with the construction of international gas pipelines, Turkmenistan systematically worked on the intensive development and processing of its hydrocarbon resources, and the combination of these two approaches, according to the British expert, “has allowed Turkmenistan to react more effectively to regional conditions, global economic crisis and changing schemes of global consumption.”

Article of senior researcher at Cambridge and London Universities Shirin Akiner “Pipeline strategy of Turkmenistan” was published in November issue of magazine “Business Central Asia” among materials devoted to the anniversary of Turkmenistan’s neutrality. A month later, the time supplemented the information contained in its description on history of the export pipeline network in Turkmenistan. Beginning of construction of TAPI gas pipeline and commissioning of East-West pipeline became significant events, testifying about further success of the energy strategy of the Turkmen state, its big technical and economic, financial potential as well as export opportunities.

Over 773 kilometer-long East-West gas pipeline laid through Mary, Ahal and Balkan provinces overcame many obstacles: railways, roads, rivers, channels and reservoirs and other civil engineering structures, sands and salt marshes. 2.5 billion USD worth project was successfully implemented owing to the efforts of local specialists.

Significance of the internal East-West pipeline, which is focused on accelerated growth of the national economy, is beyond the national borders, creating the necessary conditions for accession to the borders of deliveries of Turkmen hydrocarbon resources of new regions and directions.

In the Caspian region of strategic importance, it was created a strong base for the export of Turkmen energy resources to world markets in all four directions - north, west, south and east. It is qualitatively new phase of realization by Turkmenistan of the strategy of diversification and creation of multi-vector system of deliveries of its energy bearers. Diversification of the fuel-energy sector of the national economy is not limited only with increase of transportation direction of raw materials. Today, the scale of our objectives in this area is much wider. It is not just the enlargement of the fuel and energy complex of the country. The matter is not only about development of sectoral infrastructure, the efficient use of facilities intended for export to foreign countries of finished goods, substituting the deliveries of raw materials.

Commissioned reversible pipeline opens up completely new opportunities for effective cooperation in all four directions, and they were outlined by President Gurbanguly Berdimuhamedov in concrete proposals addressed to our partners. As the head of state underlined, “Turkmenistan is open for large-scale and multilateral cooperation in the energy field. We always confidently declare about our readiness to use colossal resource reserves, oil and gas, infrastructure, favorable geographical position of our country in the interests of the international economic, trade and investment partnership. Thus, we are very willing to invite for dialogue in our country all interested in cooperation states, companies, financial institutions and organizations.”

Consistently implementing its plans on creation of the developed network of export pipelines, which at the dawn of our independence are seemed someone unreal, our country has come close to the prospect of becoming a major industrial, commercial and communication center of the continental level. Talking about it at the opening of new gas pipeline, the head of state said: “As a result, our country will play an important role in the establishment of large-scale, multi-vector international cooperation between Asia and Europe. Successful realization of the gas pipeline project “East-West” - a significant contribution of Turkmenistan in this direction.”