Turkmenistan opens new Iran gas pipeline

[xinhui]

Turkmenistan opens new Iran gas pipeline
Iranian President Mahmoud Ahmadinejad (L) and Turkmen President Kurbanguly Berdymukhamedov in Ashgabad, Turkmenistan - 5 January 2009
The two leaders said the new pipeline was of international significance

Turkmenistan has opened a second gas pipeline to Iran, further eroding Russia's historical domination of its energy sector.

The new pipeline will eventually more than double Turkmenistan's annual gas exports to Iran to 20bn cubic metres.

With a pipeline to China that opened last month, sales to Russia will be a much smaller proportion of exports.

The EU also wants to build a gas link that bypasses Russia, which for now remains the main buyer of Turkmen gas.

Iranian President Mahmoud Ahmadinejad inaugurated the new 30km (19 miles) pipeline with Turkmen President Kurbanguly Berdymukhamedov in a ceremony in the desert near the Iranian border.

The two jointly turned a spigot to symbolically open the link, which will deliver gas from the Dovletabad field to Iran's Khangiran refinery.
Map showing Central Asia, with Turkmenistan and Iran

"This pipeline will be a good stimulus for energy co-operation between Turkmenistan and Iran, as well as for delivery of Turkmen gas to the Persian Gulf and the world market," Mr Ahmadinejad said.

The new pipelines have given Turkmenistan more power in negotiations with Russian energy giant Gazprom, which has now had to agree to pay higher prices for Turkmen gas.

Previously, the bulk of Turkmenistan's gas was transported along Soviet-era pipelines that went through Russia, giving Moscow the power to dictate prices.

Gas supplies to Russia resumed in December after an eight-month dispute over pricing.

Russia will now buy 30bn cubic metres annually, down from 50bn cubic metres before supplies were cut by a pipeline explosion in April.

BBC News - Turkmenistan opens new Iran gas pipeline

[S2]

Options

Herodotus and I had a long conversation about the development of alternative pipeline options for CAR. More the better from my view and this is an additional tool in CAR's bag to maintain leverage on its biggest resource. China and Russia will eat up CAR and dominate their energy sector if possible.

This makes it just a little less possible than before.

[xinhui]

but Iran is hardly the ideal place for EU to import their energy from. On the other hand, the India could careless, I think this could serve as an alt for the delayed Iran–Pakistan–India gas pipeline.

The Chinese already have a pipeline out of Turkmenistan, so this gas is not for them.

[S2]

xinhui Reply

"Iran is hardly the ideal place for EU to import their energy from."

I don't think it matters so long as the energy reaches the GLOBAL market and is priced according to prevailing market demand. Every gallon bought from this conduit by anybody frees up a comparable amount available for purchase from a more secure source elsewhere.

It's all one basket of energy once it reaches the open market. If you buy it here, you don't buy it there-if that makes sense. Operating such means something's available there for purchase by somebody else.

Ultimately I see Afghanistan as a central conduit for pipelines reaching south to Chabahar, Gwadar, and Karachi. This is a direct pipeline between Turkmenestan and Iran. What if relations are sour between the two? Afghanistan pipelines to Pakistani ports might be a viable alternative for Turkmenestan.

Again, I believe that the more options held by CAR on distributing its energy, the less that energy can be held hostage by any one dominating entity.

[1980s]

but Iran is hardly the ideal place for EU to import their energy from.

Looks like the Russians think the same, altho for entirely different reasons: Russia, China, Iran redraw energy map

Its a good read.

[Traxus]

Looks like the Russians think the same, altho for entirely different reasons: Russia, China, Iran redraw energy map

Its a good read.

Great article, thanks.

[xinhui]

Looks like the Russians think the same, altho for entirely different reasons: Russia, China, Iran redraw energy map

Its a good read.

, Ashgabat does not see the Chinese pipeline as a substitute for Gazprom. Russia's pricing policy ensures that Ashgabat views Gazprom as an irreplaceable customer.

The simple fact is that China will buy all Gazprom can sell, not just from the CAR pipe but also from the Far East one.

China is in no position to dictate pricing.