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    In the Pursuit of Uzbek Gas

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Summary

Energy resources will undoubtedly be a primary topic of discussion as Uzbek President Islam Karimov meets with European Commission President Jose...

by: hrgill

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Natural Gas & LNG News, Uzbekistan

In the Pursuit of Uzbek Gas

Energy resources will undoubtedly be a primary topic of discussion as Uzbek President Islam Karimov meets with European Commission President Jose Manuel Barroso during an upcoming trip to Belgium.

Despite Europe's high interest in cooperation with Uzbekistan in the gas sector,  Michael Laubsch head of the German non-governmental organization ETG (Eurasian Transition Group), believes that Uzbekistan is not particularly interested in selling energy resources to Europe and prefers other buyers for its gas.

According to BP data for in 2009, Uzbekistan ranked the second in the CIS for natural gas production after Russia.

"In the past, Europe itself refused to cooperate with Karimov, however, the fact that  Barroso expressed his desire to meet with him tells that Uzbekistan is a strategically important country for the EU," the  Laubsch told Trend in a telephone conversation from Berlin.

After the tragic events in Andijan in 2005, the European Union introduced sanctions against Karimov, and he was forbidden to enter the EU territory. In addition, the European organizations periodically act with criticism over the situation of freedom of speech and human rights in Uzbekistan.

Uzbek gas to Europe would carry a premium given the length of the transportation route, however, strategically considerations may take precedent.

According to Russian expert on Central Asia, a member of the Stanislav Pritchin,  Karimov's upcoming visit to Belgium tells that Uzbekistan may become a member of the Southern Corridor.

The South Corridor is a priority EU energy project diversifying energy supply routes and sources and increasing EU energy security. The South Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline, White Stream, and ITGI.

According to Pritchin, if the Southern Corridor is working, then the resource base for it in the future may be Uzbekistan.

Natural gas reserves in Turkmenistan may be not enough to fill all existing projects, including China's direction, the Russian direction, Iran, the planned gas pipeline Turkmenistan-Afghanistan-Pakistan-India (TAPI), the expert said.

According to him, if Uzbekistan join the South Corridor, it will be a very serious step for Europe, so the EU is working for the future.

"If the Turkmen direction of gas supplies to Europe works and the Uzbek direction has a real prospect in the future - it will seriously expand Europe's influence on the region in the context of long-term geopolitical interests," commented Pritchin.

However, according to Laubsch, despite the desire of Europe, Uzbekistan displays no serious interest in the sale of natural gas to the EU.

"There are some numbers indicating that Uzbekistan will take part in the South Corridor projects, but as far now I don't see any willing of Uzbek authorities to do that."

According to Laubsch, Karimov is mainly interested in selling his gas mainly to his Russian partners, but he is also looking forward to cooperating with the Chinese partners and also to some extent maybe with India in future.

"I don't see any statements by Karimov and his officials that they would like to open up the gas exports to Europe. I think in the past the main reason probably for it is that Europe would not intervene in country's internal policy," he said.

Read the full article at Trend HERE

Thoughts from the Financial Times on Karimov  HERE