Azernews.Az

By Aynur Karimova

Turkish companies and businessmen desire to strengthen their positions on the promising Turkmen market. This was obviously shown during a joint Turkmen-Turkish business forum and exhibition which kicked off in Ashgabat on February 9 and will last till February 11.

The Turkish delegation includes representatives of more than 100 Turkish companies specializing in mechanical engineering, chemical industry, production of industrial, agricultural and water-economic equipment, trade, education, construction and other fields.

In his addressing speech to participants of a joint Turkmen-Turkish business forum and exhibition Turkmen President Gurbanguly Berdymukhamedov said these events will be of great importance for the expansion of bilateral trade and economic partnership, increase in export of goods, development of business relations with Turkish companies and investors, wide attraction of foreign capital into the national economy.

Turkey and Turkmenistan, bound by a common history, language, religion and culture, enjoy special relations. Today the cooperation between the two countries encompasses very diverse fields - foreign policy, trade, economy, in particular energy and construction sectors, as well as culture and education.

Since the early days of independence of Turkmenistan, Turkish businessmen have contributed to the country’s development with about 600 Turkish companies registered in Turkmenistan. In the past few years, Turkmenistan has become the country in Central Asia where Turkish contracting companies undertook the most projects.

Turkish companies are making significant contributions to the infrastructural development of Turkmenistan.

Recently, amid worsening relations between Turkey and Russia, boosting ties with Turkmenistan has becomes vital for Ankara. Being Turkmenistan's top import partner, Turkey exports mostly electronic equipment, machinery, processed metals and furniture to the Central Asian nations, making up 26 percent of Turkmenistan's imports.

Meanwhile, experts believe that the energy sector is the most important field where the two countries desire to develop cooperation. They say Ashgabat and Ankara have a great potential in energy relations.

Alternative gas supplier

Currently, when relations between Moscow and Ankara are hopelessly ruined, Turkey seeks an alternative for Russian energy supplies in order to get rid of energy dependence on Moscow. Ankara has already made a strategic decision to turn down Gazprom and reject Russian gas supplies and its transit. In this context, Turkmenistan is seen as an alternative variant.

Turkey is also important for Turkmenistan as a huge and fast-growing natural gas market as well. According to estimations, Turkish natural gas market will grow by 45 percent and reach an annual volume of 65 billion cubic meters by 2023. Most of the natural gas import agreements will expire until then, which opens new doors for Turkmenistan in Turkish gas market.

Being one of the key players in the energy market of the resource-rich Caspian region, Turkmenistan has the world's fourth largest natural gas reserves after Russia, Iran, and Qatar, and produces about 70-80 billion cubic meters of gas a year.

Turkmenistan's natural gas reserves, which is equal to 10-12 percent of proven natural gas reserves in the world, is sufficient to meet Turkey’s current natural gas demand for 500 years by itself.

Today, Turkmenistan is keen to expand its natural gas market gradually to the European direction. In this regard, Turkey with its strategic position between energy-rich Central Asian country and energy-hunger European consumers plays a crucial role in Ashgabat’s getting into the European market.

As a bridge between Europe and Asia, Turkey is also a potentially key actor in natural gas trade. On the backdrop of increase of Europe's demand in blue fuel and its aim to decrease dependence on Russian gas, Turkmen gas becomes important for the economic and strategic security of Europe. It, in turn, leads to strengthening energy relations between Turkmenistan and Turkey.

It is believed that transportation of Turkmen gas to European markets through Turkey will enhance European energy security.

More focus on Southern Gas Corridor

Currently, Turkmenistan exports 58 percent of produced gas to China. However, Turkmenistan enjoys a potential to produce even more natural gas, and export it to new - European customers. The infrastructure, which would be used for supply of Turkmen gas to Europe, is the Southern Gas Corridor.

The Southern Gas Corridor project envisages the transportation of the gas extracted at the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea. Shah Deniz Stage 2 gas will make a 3,500 kilometer journey from the Caspian Sea into Europe.

The existing South Caucasus Pipeline will be expanded with a new parallel pipeline across Azerbaijan and Georgia, while the Trans-Anatolian pipeline will transport Shah Deniz gas across Turkey to meet the Trans-Adriatic Pipeline, which will take gas through Greece and Albania into Italy.

Joining of another supplier, such Turkmenistan, to the Southern Gas Corridor would be beneficial for all parts. Turkey, Europe and Azerbaijan have long courted Turkmenistan to become this "another supplier" by constructing the proposed Trans-Caspian pipeline, which would be connected to the Southern Gas Corridor.

However, Turkmenistan has been wary of partaking in a project that counters Russia, which holds a great deal of influence in Turkmenistan and elsewhere in Central Asia. Also, Turkmenistan in recent years has been more focused in fulfilling its natural gas contracts with China.

However, the Trans-Caspian pipeline, according to the energy experts, is the last option for diversifying Turkmenistan's customer base, as the implementation of the Turkmenistan-Afghanistan-Pakistan-India pipeline, the implementation of which is a high priority for Ashgabat, is fraught with security and financial concerns. Also, negotiations with Iran on using its pipeline infrastructure for gas transportation are hopeless as Iran is a strong natural gas producer itself and is not likely to help Ashgabat.

Thus, it is a chance both for Turkmenistan and Turkey to agree on the implementation of the Trans-Caspian pipeline.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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