Turkmenistan ready to supply 40 bcm of gas for Nabucco-official.

19/11 Tass 108

ASHGABAT, November 19 (Itar-Tass) - Turkmenistan is preparing the
infrastructure for delivery to Europe of 40 billion cubic metres (bcm) of
natural gas, Turkmen Deputy Prime Minister Baimurad Khodzhamukhamedov said
on Friday at the Ashgabat forum Turkmenistan International Oil and Gas
Conference 2010 that has gathered 700 delegates of gas companies from 36
countries worldwide.
"The construction of the trans-Caspian gas pipeline will be
coordinated in compliance with all environmental standards and after
expert examinations, which meets the policy of diversification of natural
gas sales pursued by Turkmenistan," Khodzhamuhamedov said. Touching upon
the raw material supply for Nabucco, the question of which has repeatedly
been raised in speeches of the conference participants, the Turkmen deputy
prime minister said that "in 2011 Turkmenistan needs the market of natural
gas recovered by the Malaysian company Petronas in an offshore block in
the volume of 5 billion cubic metres." "We simply have nowhere to take it
to," added Khodzhamukhamedov.
"Turkmenistan is building the East-West gas pipeline with the capacity
of 30 billion cubic metres for delivery of gas of the South Yolotan giant
field to the west," he said. "Taking into account the domestic gas
consumption in the west of the country and gas supplies from there to
Iran, we will have up to 40 billion cubic metres of spare gas annually, so
European countries do not have to worry," the Deputy Prime Minister said.
Issues of building the trans-Caspian gas pipeline, as well as its
filling has so far have been the main deterrent for the development of the
Nabucco project for the supply of Central Asian gas to Europe, bypassing
Russia. The announcement of the Turkmen Deputy Prime Minister became the
main event of the Oil and Gas Conference in Ashgabat.
The Nabucco pipeline (also referred as Turkey-Austria gas pipeline) is
a proposed natural gas pipeline from Erzurum in Turkey to Baumgarten an
der March in Austria diversifying natural gas suppliers and delivery
routes for Europe. The pipeline attempts to lessen European dependence on
Russian energy. The project is backed by several European Union states and
the United States and is seen as rival to the Gazprom-led South Stream
pipeline project. At the same time, there are some doubts concerning
viability of supplies. The main supplier is expected to be Iraq in
cooperation with Azerbaijan, Turkmenistan, and possibly Egypt.
Preparations for the Nabucco project started in 2002 and the
intergovernmental agreement between Turkey, Romania, Bulgaria, Hungary and
Austria was signed on 13 July 2009. The project is developed by the
consortium of six companies. The final investment decision is scheduled to
be made in 2011. If built, the pipeline is expected to be operational by
2015 and it will carry 31 billion cubic metres of natural gas per year.
According to the conference organisers, Turkmenistan is experiencing a
new era in its development - a period of renaissance and great
transformation. Accordingly, Turkmenistan's oil & gas industry has become
an important contributor to the development of the entire economy. As a
result, the Government of Turkmenistan has created and is currently
implementing a long-term plan for the development of both oil and gas
industries through 2030. Investment openness of Turkmenistan, commitment
to dialogue, and the willingness to implement and support new projects is
demonstrated by the recent multi-billion dollar contracts awarded to
international companies. The government has emphasised the priorities for
the development of the oil and gas industry. Among them: the
implementation of new exploration and production projects; the rapid
industrial development of onshore and also offshore oil & gas resources
located and in the Turkmen sector of the Caspian Sea and its coastal zone;
to increase efficiency in the development of existing fields; the
development of refining infrastructure and capacity; the development of
the chemical sector; the expansion of domestic and international transport
infrastructure; the implementation of the advanced technologies and modern
techniques; the training and education of Turkmen nationals.
-0-ezh