Tuesday 5 January 2010

TURKMENISTAN: WESTERN FIRMS SHUT OUT FROM DEVELOPMENT DEALS

Turkmenistan appears to be implementing an eastern strategy in order to export natural gas to the West.

Ashgabat has traditionally shipped most of its gas to Russia, but a long-lasting pricing dispute has severely strained the two countries’ special energy relationship. [For background see the Eurasia Insight archive].

In early December, Turkmenistan inaugurated an export route to China - a momentous export-diversification move. And on December 30, Ashgabat took the first step toward possibly upping its export volume to Western Europe countries by awarding $9.7 billion in contracts to develop the South Yolotan gas field.

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