Focus on Turkmen gas

The geopolitical tensions in the Middle East are shifting the outlook for the global gas market - and bringing Turkmenistan more into focus. Demand for Central Asian gas could become more important, particularly in China, but also in Turkey and Europe. The trigger is the uncertainty along important maritime routes. If liquefied gas transportation is restricted by bottlenecks or blockades, land-based supply routes automatically become more attractive. For China, this means that gas from Central Asia could come back into focus. President Xi Jinping used the visit of his Turkmen counterpart Berdimuhamedov to Beijing to re-emphasize cooperation in the energy sector. China remains a key customer Turkmenistan already supplies most of its gas to China. Around 55 billion cubic meters flow annually via three pipeline lines - an expansion to up to 85 billion is planned, but progress is slow. At the same time, a structural imbalance is becoming apparent: while China's gas imports from Russia have recently increased significantly, supplies from Turkmenistan have declined. Experts see this as a strategic calculation by Beijing, which is balancing different suppliers against each other. Turkmenistan is therefore under increasing pressure to broaden its export base. For years, a connection to Western markets has been on the cards - in particular via the Caspian Sea towards Azerbaijan and on to Turkey. Technically, such projects could be implemented relatively quickly. Short offshore connections could use existing infrastructures and open up access to European customers. Europe as a possible option This option is becoming increasingly relevant, especially against the backdrop of uncertain energy flows. Europe continues to look for diversified sources of supply, while central transit corridors are gaining in strategic importance. Whether Turkmenistan will actually take this step remains to be seen. What is clear, however, is that the current situation is changing the rules of the game on the energy market - and opening up new scope for action for the country. The post Turkmen gas in focus appeared first on ostwirtschaft.de.