World's Energy

28 November 2008 - Upstream OnLine - Turkmenistan and Azerbaijan - both major Caspian Sea producers - have agreed to diversify their energy shipments out of the region as par of a wider energy co-operation agreement. Speaking after talks with Azeri President Ilham Aliyev, Turkmen leader Kurbanguly Berdymukhamedov said the two nations would develop closer relations for energy exploration, development and shipments. "Our countries have abundant energy resources. We do agree that we should have open doors. We stand for diversification," Reuters quoted Berdymukhamedov as saying. Europe wants to pump Central Asian gas along the Nabucco route via Turkey through a 3300 kilometre network of pipelines - a plan that has irritated Russia which sees the energy-rich region as part of its sphere of interest. Turkish President Abdullah Gul is due to visit Turkmenistan on Saturday to meet Berdymukhamedov and Aliyev to discuss energy. Turkmenistan has long said it is seeking to diversify energy shipments and work closer with Europe while maintaining good relations with Russia, which controls its gas exports through gas monopoly Gazprom . Adding weight to Turkmen ambitions to start shipments to the West without cutting back on Russian exports, UK outfit Gaffney, Cline & Associates (GCA) this year classified the South Iolotan-Osman gas field as one of the world's biggest. Speaking alongside the Turkmen leader, Aliyev, on his first visit to Turkmenistan, also urged more co-operation. "Turkmenistan and Azerbaijan play a key role in ensuring the energy security of other countries," said Aliyev. "There is no doubt that this role will only increase in the future."