World's Energy

04-23-2009 - Upstream OnLine - Turkmenistan told the West today it is actively looking for new ways of diversifying its gas exports, in a snub to Russia which wants to keep the energy-rich former Soviet republic on a tight leash. Relations between Turkmenistan, which sells most of its natural gas to Russia, and Moscow deteriorated sharply this month following a gas explosion on a key pipeline which Turkmenistan blamed on Russia. The accident reinforced the West's resolve to convince Turkmenistan to work more closely with Europe. Today, Turkmen President Kurbanguly Berdymukhamedov told foreign energy chiefs who have gathered in Ashgabat to attend an energy conference, that he wanted more co-operation. "Turkmenistan needs to create a new system of ties with Europe," Reuters quoted him telling a packed hall of US, European and Russian officials. "In the current environment diversification of energy flows and inclusion of new countries into the geography of export routes can help the global economy gain stability." Worried that Turkmenistan may roll out of its traditional sphere of interest, Moscow has sent Prime Minister Vladimir Putin's powerful Deputy Prime Minister Igor Sechin to counter Western efforts on the sidelines of the two-day conference. Europe has courted Central Asia's biggest gas producer because it sees it as a potential supplier for the planned Nabucco gas pipeline, at the centre of its plans to reduce its energy dependence on Russia. US Deputy Assistant Secretary of State George Krol, a senior United Nations official, general secretary of the Organisation for Security & Co-operation in Europe and heads of global energy companies were also present, Reuters said. "We have to make sure that there are no disruptions in energy supplies," Sha Zukang, UN Under Secretary General for Economic & Social Affairs, said through an interpreter. "We have to reduce uncertainty surrounding energy supplies." Turkmenistan said an explosion on a gas link on 9 April was caused by Russia's abrupt reduction of imports. It fully halted imports from Turkmenistan after the blast. Russian gas giant Gazprom has not commented on the Turkmen allegations. The accident happened at a time when Russia, hit hard by falling gas demand in Europe, was forced to cut gas output by a quarter. Turkmenistan produces about 75 billion cubic metres of gas a year and sells about 50 Bcm of that to Gazprom. As part of its diversification, it is building a separate pipeline to China. The European Union-backed Nabucco pipeline will also be at the centre of talks in Ashgabat this week but analysts said the project may be headed for failure unless the EU commits to buying Caspian gas quickly.