2024-03-15 09:02:55
Source: Trend International Information Agency
Geopolitical changes in the Eurasian region in recent years and the need to adapt to the new energy policy of the world are encouraging countries to take new steps. Although, on the one hand, projects for the transition to a new generation of energy are being discussed, on the other hand, most of the world continues to meet its energy needs through natural gas. It is for this reason that gas projects, especially those that correspond to the new geopolitical reality, remain relevant.
In 2022, Russian President Vladimir Putin made a proposal to create a gas hub (node) in Turkey. Having received the proposal positively, the Turkish side began to make the necessary changes to legislation in 2023 for the operation of the gas hub, and in the summer Russia presented Turkey with a road map for the hub project. Turkish President Recep Tayyip Erdogan, in a victory speech after the elections, once again expressed interest in the project.
It should be noted that Turkey meets its needs for natural gas mainly through gas imported from Azerbaijan through Russia and the Southern Gas Corridor. Resource-rich Russia wants to maintain its role as a major gas hub supplier and its say in energy markets by introducing this project. The Republic of Turkey can import gas from Azerbaijan and Iran in parallel with Russia as part of this project. Thus, official Ankara has the opportunity to purchase 10 billion cubic meters of gas from Iran through the Tengiz-Ankara pipeline. On the other hand, it must be emphasized that Turkey has important advantages in terms of forming a regional gas hub: underground gas storage facilities, two liquefied gas terminals, ready-made infrastructure for transporting gas from main sources – pipeline lines.
Turkish Gas Network
One of the main interesting points is related to the fact that gas exports from Turkmenistan through Turkey are quite possible in the future. Turkmenistan ranks fourth in the world in terms of natural gas reserves after Qatar, Iran and Russia. Recently, the Chairman of the Khalk Maslakhaty (People’s Council) of Turkmenistan, Gurbanguly Berdimuhamedov, said at the Antalya Diplomatic Forum that Turkmenistan is preparing for membership in the Organization of Turkic States (OTS) and relations with the Turkic states will become closer in all areas. Undoubtedly, gas projects are one such area.
Although China is the main buyer of Turkmen gas, its rich resources make it an important country both for the region and for Europe, which is in dire need of gas. Turkmenistan is also a participant in the TAPI gas pipeline project jointly with Afghanistan, Pakistan and India, but so far its implementation is late. The idea of a Trans-Caspian gas pipeline to deliver Central Asian resources (in particular, Turkmen gas) to Europe was put forward back in 1997, but, unfortunately, could not go beyond the discussion stage for many years.
Turkmen gas network
The new geopolitical realities of recent years also make new projects important. That is why one of the important points is which route Turkmenistan will choose at the new gas hub to transport its natural gas reserves to Europe.
There are two main directions here: the first is associated with the West, and the second with the East. Turkmenistan will either join the same gas hub with Turkey and Azerbaijan and thereby choose the European, that is, western vector, or choose the eastern vector, taking a joint place in the gas hub with Russia and Iran.
Azerbaijan, located at an important strategic point, will also become a participant in a joint gas hub with Iran and Russia. Starting in April 2022, Azerbaijan imports natural gas from Turkmenistan. This comes after the leaders of Azerbaijan, Turkmenistan and Iran entered into a “swap” at the end of 2021. In accordance with the agreement, Turkmen gas is imported into Iran in the northeast of Iran, and in return this amount of gas is transferred to Azerbaijan in the northwest. According to a statement by the Iranian side, since the beginning of 2024, gas supplies in accordance with the swap agreement have been temporarily suspended, however, negotiations are currently underway between Azerbaijan and Turkmenistan on the resumption of gas supplies based on new tariffs.
At the end of 2023, Turkmenistan announced its readiness to begin a natural gas infrastructure project that would connect Central Asia and the South Caucasus with Europe through Turkey. On March 5, 2024, at the Antalya Diplomatic Forum, an agreement on cooperation in the gas sector was signed between Turkmenistan and Turkey. According to the agreement, Turkmen gas will be transported to Europe through Turkey. There are three main options for transporting natural gas to Europe: the first of them is transporting gas through Iran to Turkey using the swap method. The second option involves the transfer of gas to Turkey via exchange through Iran and Azerbaijan, and the third – the supply of Turkmen gas to Turkey via a pipeline through the Caspian Sea.
Thus, the current picture gives reason to say that regardless of which direction Central Asia with rich gas reserves, especially Turkmenistan, chooses for greater diversification of gas policy, members of the UTG will play a key role in the issue of energy supply to Eurasia.