In Turkmenistan, big powers eye Central Asia energy options
Thursday, 23 April 2009
ALMATY, Apr 22 (AFP): Big powers are dispatching envoys to an energy conference in Ashgabat this week amid shifts in Central Asian oil and gas politics the West hopes could loosen Moscow's grip on the strategic region.
An explosion earlier this month on a gas pipeline in ex- Soviet Turkmenistan sparked a diplomatic clash with Russia and the Kremlin is sending three top energy bosses to the gathering Thursday in part to contain the fallout.
The powerful troika of Gazprom chairman Alexy Miller, Energy Minister Sergei Shmatko and Deputy Prime Minister Igor Sechin were all en route to the reclusive Central Asian nation this week ahead of the conference.
Russia, which holds a near-monopoly on Turkmen energy exports through its network of aging Soviet-era pipelines, has in recent years used Turkmen gas to bolster its flagging domestic production to meet European demand.
But with Europe caught in the grip of the global financial crisis, demand on the continent has dropped, leaving Moscow with little incentive to fulfill pricy contracts signed during the boom years.
Concerned over the contracts, the Turkmen leadership is hoping to use this week's conference to demonstrate to Moscow that it still has other options, said Ana Jelenkovic, an analyst with London-based think tank Eurasia Group.
"I think Turkmenistan is still hoping they can pressure Gazprom into maintaining its commitments by threating to open up its market to other players and pursuing other export initiatives," Jelenkovic told AFP.
An explosion earlier this month on a gas pipeline in ex- Soviet Turkmenistan sparked a diplomatic clash with Russia and the Kremlin is sending three top energy bosses to the gathering Thursday in part to contain the fallout.
The powerful troika of Gazprom chairman Alexy Miller, Energy Minister Sergei Shmatko and Deputy Prime Minister Igor Sechin were all en route to the reclusive Central Asian nation this week ahead of the conference.
Russia, which holds a near-monopoly on Turkmen energy exports through its network of aging Soviet-era pipelines, has in recent years used Turkmen gas to bolster its flagging domestic production to meet European demand.
But with Europe caught in the grip of the global financial crisis, demand on the continent has dropped, leaving Moscow with little incentive to fulfill pricy contracts signed during the boom years.
Concerned over the contracts, the Turkmen leadership is hoping to use this week's conference to demonstrate to Moscow that it still has other options, said Ana Jelenkovic, an analyst with London-based think tank Eurasia Group.
"I think Turkmenistan is still hoping they can pressure Gazprom into maintaining its commitments by threating to open up its market to other players and pursuing other export initiatives," Jelenkovic told AFP.