The Diplomat: Central Asia’s Energy Rush
Central Asia is rapidly emerging as the key playing field in the contest to access energy resources and the leverage they offer. The new Great Game is played out once again in the region, only this time it is not over political or territorial influence, but over the vast raw material deposits that are in the possession of the former Soviet Union republics, especially those situated by the Caspian Sea. The Caspian’s share of oil and gas global exports is set to rise to 9 and 11 percent, respectively, in the coming 20 years. Much is at stake.
Russia, although not a direct producer, was and still is – given the developed pipeline network – supervising much of an energy transit from Central Asia. The Central Asia-Center gas pipeline system, the first line of which was completed in 1960, makes for a good case study. It allows both Uzbek and Turkmen gas to be delivered to Russia, which then resells it at a profit to energy-hungry Europe or uses it for domestic purposes. Moscow exercises its influence over the region and as a consequence gains both politically and economically.
In the wake of the collapse of the Soviet Union, Central Asian states sought to loosen Russia’s firm grip. An independent complex pipeline system was a priority for transporting the resources outward. Given that the Caspian Sea is landlocked, gas and oil need to cross several borders before reaching an end customer. This requires a very substantial investment, yet energy diversification in Central Asia is moving steadily ahead.