AzerNews: Perspectives of Trans-Caspian Project
The project of a Trans-Caspian Pipeline (TCP) between Turkmenistan and Azerbaijan via the Caspian Sea is on the table again after the strategic decision to open the Southern Gas Corridor linking Shah Deniz 2 with the European Union via the Trans-Anatolian Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) projects.
Piping Turkmen gas to Europe appears to be the next logic step in the development of the Southern Corridor and has recently become very topical. This paper seeks to contribute to the discussion about TCP by analyzing it from both economic and business angles. TPC depends heavily on Turkmenistan which is interested in the option of direct gas sales to Europe. However, the project faces a number of obstacles.
Firstly, Turkmenistan has signed a strategic agreement with China for 30 billion cubic meters of gas annually in 2007, the volumes of which have only recently reached targeted figures. The existing pipeline between Turkmenistan and China (via Uzbekistan) has the capacity to transfer up to 65 bcm a year.