Turkmenistan Rebukes Russia

Denies Gazprom TAPI pipeline participation

Turkmenistan denied today Russian statements that its gas export monopoly Gazprom could take part in a trans-Afghan gas pipeline and that Moscow and Ashgabat had agreed to freeze the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.

Turkmenistan accused Russia of meddling in its efforts to build energy ties with Europe, the latest flare-up in tensions over gas trade between the two former Soviet nations.

Russia's top energy official, Deputy Prime Minister Igor Sechin, had told reporters during President Dmitry Medvedev's visit to Turkmenistan last week that Gazprom could take part in the central Asian state's TAPI pipeline project.

There was "no agreement whatsoever" on the participation of Russian companies in the TAPI project, the Turkmen Foreign Ministry said.

"Turkmenistan hopes that when making their statements Russian officials will be guided in the future by the sense of responsibility and reality."

The foreign ministry rejected suggestions by Russian Deputy Prime Minister Igor Sechin that the country was unlikely to ever be able to sell its gas without crossing Russian territory.

"Turkmenistan views such statements as an attempt to hamper the normal course of our country's co-operation in the energy sector and call into question its obligations to its partners."

"Turkmenistan will continue to raise the significance of Europe-bound projects in its energy policy and will independently choose partners. Turkmenistan has sealed deals with large European companies -- including in the energy sector -- that have shown themselves to be trustworthy, honorable and reliable partners," the ministry said in a statement.

Renewed hope in Europe

The war of words, which comes just days after a visit by  Russian President Dmitry Medvedev, signals a renewed frostiness in relations.

Turkmenistan, Central Asia's largest natural gas producer estimated to hold the world's fourth-largest reserves of the fuel, is eager to triple its current annual output of some 75 billion cubic metres (bcm) within 20 years.

The nation is also keen to lessen its dependence on its former imperial master and traditional gas buyer, Russia.

Russia last year abruptly suspended its imports from Turkmenistan amid mutual accusations over responsibility for a pipeline blast in April. Deliveries resumed in January 2010, but at much smaller quantities.

State-owned Turkmengaz says that Russian gas imports are expected to reach about 10 billion cubic meters this year, down from the annual 40 billion cubic meters it bought previously.

The Foreign Ministry's comments may be greeting in Europe. The European Union has lobbied actively for Turkmenistan to supply the planned Nabucco gas pipeline, a major project that would bring Caspian and Central Asian gas to Europe, bypassing Russia.

Up until recently, there appeared to be a rapprochement between Russia and Turkmenistan.

In late September, the Turkmen President Gurbanguly Berdymukhammedov said the country would continue to maintain a policy of strategic cooperation with Russia in the oil and gas sphere despite the negative impact of the global economic crisis on joint projects.

Perhaps hedging its bets, RWE AG, the German utility and Nabucco, had said the pipeline project may not need gas supply from Turkmenistan if present negotiations with the Kurdistan Regional Government and Azerbaijan are successful.

New Paths

Turkmenistan has increasingly sought out other clients as it seeks to diversify supplies from its traditional market, Russia.

Deliveries to China began through a new pipeline completed late last year and are expected to hit 40 billion cubic meters in 2015 and Iran has also increased its imports of Turkmen gas.

In June, Turkmenistan said that it would welcome U.S. support to diversify its energy exports.

ExxonMobil, the largest natural gas producer in the United States, has reopened its office in Turkmenistan and said it was keen to develop its giant natural gas resources.

"Turkmenistan has great potential to be a regional energy and economic leader given its abundance of natural gas, which is the fastest growing fuel around the world," Joerg Weller, general manager of ExxonMobil Exploration and Production Turkmenistan Ventures B.V., said in a statement.

The Turkmen President met Rob S. Franklin, president of ExxonMobil Upstream Ventures, on Tuesday and "stressed the large potential for partnership with this company", the official Neitralny Turkmenistan daily said on Wednesday.

Berdymukhamedov said, "the huge experience of ExxonMobil could be successfully used in geological exploration and development of Turkmen hydrocarbon reserves on the Caspian Sea shelf, and in oil processing".