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    World Economics Turkmenistan

    Turkey to receive Turkmen gas through new deal with Azerbaijan

    Turkey to receive Turkmen gas through new deal with Azerbaijan

    Turkey is set to receive natural gas from Turkmenistan following a new agreement with Azerbaijan, bypassing Iran from the transit route. The agreement, signed by Turkish Energy Minister Alparslan Bayraktar and his Azerbaijani counterpart on May 14, focuses on expanding the capacity of several gas pipelines and facilitating Turkmen gas transit to Turkey and Europe, Chronicle of Turkmenistan reports.

    Turkmen gas pipelines (2023)
    CABAR

    This comprehensive deal underscores Turkey's strategic move to diversify its energy sources and secure additional gas volumes by 2030. While specific volumes are yet to be announced, the deal aligns with Turkey’s broader energy goals. Bayraktar noted that the Igdir-Nakhchivan gas pipeline would soon be operational, further enhancing regional energy connectivity.

    Earlier in March, Turkey had signed a gas purchase agreement with Turkmenistan, signaling its intent to deepen energy cooperation. Turkmenistan's Chairman of the Halk Maslahaty, Gurbanguly Berdimuhamedov, emphasized the country's interest in creating new supply routes to Turkey and Europe, with President Serdar Berdimuhamedov ordering an increase in gas production.

    Currently, China is the largest importer of Turkmen gas, but recent developments suggest a shift. In February, Gazprom temporarily surpassed China in monthly imports from Turkmenistan. Azerbaijan, another key partner, has primarily accessed Turkmen gas through swaps with Iran until recently. However, Baku and Ashgabat have stopped this arrangement due to high transit fees and logistical issues. In 2023, Turkmenistan exported 40bn cubic meters of gas, mostly to China at discounted rates, and now needs to utilize new routes to boost its export potential. 

    Ilham Shaban, head of the Caspian Oil Research Center, mentioned that Turkmenistan could deliver gas to Azerbaijan either through a short subsea pipeline or the 300-km Trans-Caspian pipeline. Azerbaijan has historically supplied its Nakhchivan exclave via swaps with Iran but will soon utilize the Igdir-Nakhchivan pipeline through Turkey.

    Southern Gas Corridor map
    SOCAR

    Azerbaijan's gas exports totaled 24bn cubic meters in 2023, with significant volumes directed to Georgia, Turkey, and Europe via the Southern Gas Corridor. A memorandum of understanding between the EU and Baku aims to double Azerbaijani gas intake by 2027.

    Iran, excluded from the new transit routes, has faced challenges due to frequent winter supply interruptions and limited investment due to sanctions. Consequently, Turkey halved its Iranian gas imports to 5.2bn cubic meters in 2023, with the 25-year gas deal set to expire in 2026.

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    21.05.2024, 10:06   Comments (0)   1850
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    Tawney Kruger

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