Turkmenistan eager to offer reliable energy supplies to world markets
By Fatma Babayeva
Turkmenistan stands for broad international cooperation in defining ways for reliable energy transportation to international markets, the Strategic Planning and Economic Development Institute of Turkmenistan said in its report released on April 19.
Turkmenistan is one of the richest countries with natural gas reserves in the world. In accordance with BP’s statistics, recoverable reserves of the country amount to 17.5 trillion cubic meters of natural gas or 10 percent of the world’s total reserves which makes Turkmenistan fourth richest country with natural gas in the world after Iran, Russia and Qatar.
Estimated reserves of Turkmenistan grew by 7.5 times over the past five years.
The Turkmen Institute stressed that expansion of energy exports is constrained by the recent situation on the world stock market, which can be compared with the events of 1930's Great Depression.
Besides, the stock and physical oil markets which essentially determine the prices of all major energy supplies demonstrate a close correlation with each other. Decrease in all energy prices accompanied with reduction in the capitalization of companies and, subsequently, the constriction of investment opportunities, the report said.
In these conditions, concerted action is necessary among producing, consuming and transit countries which are capable to optimize the economic development, including the creation of the infrastructure necessary for the transportation of energy supplies. This can be done only on the basis of five principles: legal framework, resource base, environmental safety, economically justified tariffs, the availability of long-term contracts on the supply and transportation of hydrocarbons resources.
The attempts to politicize energy supply, to use them as a tool to achieve political goals or to meet any corporate interests do not correspond to the logics and the needs of the present global development, the Institute emphasized.
Therefore, Turkmen government has proposed to build relationships in the energy sector under the aegis of the UN. On the international markets, proposals are made for the development of universal UN mechanisms designed to secure the functioning of the international infrastructure of energy supplies, as well as equal access to energy.
Key elements of the energy strategy that Turkmenistan realizes are the growth of production and export of natural gas, as well as diversification of supply routes to the world's largest markets.
An effective step towards building a global partnership began with commissioning of the Trans-Asian gas pipeline (Turkmenistan-China) in December 2009.
Currently, the construction of Turkmenistan-Afghanistan-Pakistan-India transnational gas pipeline is underway.
The Strategic Planning and Economic Development Institute was
established upon the Turkmenistan president's decree issued on
October 11th, 2007. The Institute is mainly involved in complex
analysis of current processes in country’s economy including
scientific research for designing national economic development
programs and directions for social-economic reforms.
The Institute has the responsible for developing national
strategies.
Turkmenistan has been experiencing rapid economic growth in recent years, mainly energized by hydrocarbon-led export and increase in public investments.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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