A Bloomberg article published on July 31 informs that Turkmenistan needs to act swiftly if it wishes to supply gas to the European Union. The article responds to a recent statement from Turkmenistan's Ministry of Foreign Affairs, where they expressed confidence in the feasibility of the Trans-Caspian gas pipeline project, stating that political, economic, and financial factors would not hinder its construction. The pipeline is considered a realistic project with economic justifications and potential benefits for energy security in Eurasia, ensuring continuous access to raw materials for European consumers while considering the interests of the transit side.
Bloomberg analysts said that Turkmenistan has good opportunities to supply gas to world markets, but many factors are preventing it:
- In particular, the country has historically focused on cooperation with Russia under sanctions. But Turkmenistan's relations with European countries are on a bad track. In 2023, the President of Turkmenistan plans to visit Brussels and meet with the heads of European Union institutions.
- The issues of demarcation of the seabed between Turkmenistan and Azerbaijan have not been resolved. The cost of the project is estimated at $2 bn, it is not clear how the countries will share the costs.
"In any project, from building new facilities to current renovations, someone is trying to make money. This leads to direct damage: such as refusing to replace expensive sensors and buying low-quality chemicals. As a result, an accident occurred at the Galginish field last winter, and the supply of gas to Uzbekistan was stopped for several days," the report said.
The construction of the Trans-Caspian gas pipeline is expected to be a lengthy process, while European buyers currently import gas from the USA and Qatar. Moreover, analysts predict that Europe will increasingly transition to alternative energy sources within the next 15-20 years. Bloomberg's inability to obtain comments from Turkmenistan's Ministry of Energy and "Turkmangaz" suggests a lack of effective communication between the country and its European partners. Turkmen News highlights corruption and unprofessionalism among Turkmen officials and gas workers as significant shortcomings, with appointments to key positions often influenced by connections rather than qualifications. These challenges may pose obstacles for Turkmenistan's efforts to engage effectively with European energy markets.
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