Turkmenistan signs initial gas pipeline agreement with Turkey

Turkmenistan has signed an outline deal with Turkey to supply gas to a new pipeline that could help Europe reduce its dependence on Russian gas imports.

The two countries struck a so-called framework agreement last Friday for Turkmenistan, which is keen to diversify exports of its gas to world markets, to supply gas to the proposed Trans-Anatolian natural gas pipeline project (TANAP).

Turkish President Tayyip Erdogan and his Turkmen counterpart Kurbanguly Berdymukhamedov oversaw the signing of the agreement between Turkmen state gas company Turkmengas and private Turkish firm Atagas for the purchase and sale of Turkmen gas for TANAP.

The two sides did not disclose the terms of the agreement.

TANAP envisages carrying 16 billion m³/yr of gas from Azerbaijan's Shah Deniz II field in the Caspian Sea, one of the world's largest gas fields, which is being developed by a BP-led consortium.

TANAP's capacity is set to rise to 23 billion m³/yr by 2023 and to 31 billion m³/yr by 2026.

However, to join the pipeline Turkmenistan will have to lay another pipeline across the Caspian Sea. One option is to lay a 300 km gas pipeline through the Caspian Sea to the coast of Azerbaijan.

Edited from various sources by Elizabeth Corner

Sources: Reuters, Trend

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