Eurasia Review: The Momentum For The Trans-Caspian Pipeline

The proposed Trans-Caspian Pipeline (TCP), which aims to bring Turkmen gas to Europe, has recently become a topic of intense debate. Despite the existing barriers to the implementation of the project, there have been positive shifts towards its construction. The Ashgabat Declaration launched the work of the intergovernmental committee and provides a foundation for the practical implementation of the project. The EU is much more interested in the TCP than before, as it may face natural gas shortages after 2019 when the gas contract between Russia and Ukraine expires. Turkey’s regional energy hub ambitions mean that it is keen to play a political role. Turkmenistan sees not only financial benefits, but also advantages in terms of diversifying its export routes. The collective commitment by the interested parties – Azerbaijan, Turkmenistan, Turkey and the EU – in overcoming the various obstacles to the project’s implementation indicate strong prospects for success.

Analysis

Foundations for high-level negotiations were laid during the visit by the Turkish president to Turkmenistan (November 7, 2014), when he stated that the Trans-Anatolian Pipeline (TANAP) is dependent on gas supplies from Turkmenistan. During the visit, an agreement on cooperation was signed between Atagas (a private Turkish Gas Company) and Turkmengas (the national gas company of Turkmenistan) over the purchase and sales of natural gas. In 2013, the TCP was placed on the list of Projects of Common Interest of the European Commission.

In the absence of a pipeline capable of transporting large volumes of gas from the Caspian Basin to Europe, the potential role of the TCP was unclear. But by 2019, with the expansion of the South Caucasus Pipeline (SCP), the construction of TANAP and Trans-Adriatic Pipeline (TAP), a Caspian-European route will become available. The other problem was the lack of available gas ready to be transported from the eastern coast of the sea. MORE