May has come and reminded me about the pre-Caspian gas pipeline project. A year ago, on May 12, in Turkmenbashi town a declaration on the pre-Caspian project was signed. The document endorsed by presidents of Russia, Kazakhstan and Turkmenistan assumed a construction of the pre-Caspian gas pipeline (to run along the Caspian Sea coastline through the territories of Turkmenistan and Kazakhstan alone). The document did not clearly state whether a new gas pipeline along the Caspian Sea would be built or the existing Central Asia-Centre 3 (CAC-3) route would be modernized. Moreover, the document declared that by 1 September 2007 the parties should have prepared and signed agreements on cooperation to implement the aforementioned project. Well, all this happened and I still remember the comments after Putin’s visit to Turkmenistan – Russia takes over Central Asian gas etc. But just few months later, the problems arised. The parties did not manage to sign the mentioned agreement by Sep 1 and the document was signed only in late December. What is more, Berdymukhamedov did not come to Moscow for the “ceremony” but sent his deputy PM. The parties (this time not presidents but ministers: Russian energy minister Viktor Khristenko, industry and trade minister of Kazakhstan Galym Orazbakov and the executive director of Turkmenistan’s State Agency for the Management and Use of Hydrocarbon Resources, Bairammyrat Myradov) signed an agreement on cooperation in constructing the pre-Caspian Gas Pipeline (that is funny because I found on official Kremlin.ru website that the agreement was concerning… Trans-Caspian pipeline – the alternative project which is strongly supported by the USA - a Freudian slip?). I would also like to point out that such “significant” document was signed during a working visit of Nazarbayev to Moscow. Was it really a big deal? I don’t know -  the parties did not announce the details or maybe no details were defined. Anyway, the document was signed and… nothing has happened. The works have not been launched and I have heard nothing about preparation of feasibility study etc. Instead, I found mysterious information (in Russian news agency Itar-Tass) that the parties intended to initiate works on the project in the second half of the year, according to the Russian Energy Ministry.

Even more surprising was the recent information from a Kazakh official. Astana intends to start pre-Caspian pipeline construction only in 2009.

The commencement of construction of Kazakhstan part of the Caspian gas pipeline is expected in 2009 after completion of the feasibility study development and taking a decision on the project implementation, KMG Vice President [Daniyar Berlibayev] for transportation and processing, informed. According to him, the project parameters, such as the cost of construction, sources of financing and certain resources to be used for loading the gas pipeline, will be defined on the basis of the feasibility study results. Oil & Gas of Kazakhstan reported in April.

It seems that no details on the project are defined. What is more, the formal decision is still to be taken! I don’t want to say that pre-Caspian Project is a bluff. But, you know, I’m still waiting for the results.
I can tell you one thing, the Turkmenistan-China gas pipeline project is much more advanced and I’m going to prove it in my next post.