Gas pipeline from Turkmenistan unlike the pre-Caspian project (see my previous post) is becoming reality. Here is a bunch of facts to prove it.

The first frame agreement on gas exports to China was signed by former president Sapparmurat Niyazov in April 2006. Just year later, his successor – Gurbanguly Berdymukhamedov went to Beijing in July 2007 and signed another agreement on construction of the pipeline. The works were officially inaugurated in August 2007. China also managed to sign a 30-year gas imports agreement and to secure access to one of the Turkmen onshore fields – a resource base for the pipeline. The planned route to China will have a capacity of 30bcm (the capacity of the pre-Caspian pipeline is not decided yet) of gas per year however the Kazakh section of the line will be wider and will have a capacity of 40bcm of gas per year. Thus, it seems that Astana is considering exporting its own gas to China as well.

After few months of signing the agreements, China set up joint ventures in Turkmenistan, Uzbekistan and Kazakhstan to build the route. Significantly, Russian company Storytrasgas was contracted to build the Turkmen section of the pipeline, and recently another Russian company won a tender for providing the pipes. This persuaded me to thinking that Russia agreed for the pipeline to China in exchange for construction contracts…

I just want to add that according to the recent information, the first stage of the route would be completed on Jan 1, 2010 while the second – by Jan 1, 2013.

The facts are merciless; China seems to be faster in securing its gas interests in Turkmenistan. I would even say that China is the only “big player” which managed to get access to the Turkmen enormous gas reserves so far. I’m wondering who will be next Russia, the West (the EU and the USA) or maybe India and Pakistan.