Benefits of the Trans-Caspian Pipeline project, which envisages transportation of gas from Turkmenistan to Europe through Azerbaijan are obvious, Trend reports citing Cyril Widdershoven, a Middle East geopolitical specialist and energy analyst, a partner at Dutch risk consultancy VEROCY and SVP MEA-Risk.
“There are obvious benefits for Europe, as the continent is still looking for diversification of its natural gas supply options. By addressing and opening up Central Asian and Caucasus sources, additional volumes of gas can be sourced,” said the expert.
He noted that, in general, both Turkmenistan and Azerbaijan hold vast gas reserves. “By increasing demand options (aka EU) both will be able to monetize their gas against viable and attractive gas market price settings. It also will increase the relationship between both regions to the fullest,” said Widdershoven.
He pointed out that the Trans-Caspian Pipeline should be heavily supported by the European Bank for Reconstruction and Development, the European Investment Bank, the International Monetary Fund and institutional investors.
Turkmenistan has declared its readiness to supply Europe with an annual volume of up to 30 billion cubic meters of gas. Turkmenistan is currently studying the possibility of a 300-kilometer gas pipeline to be laid along the Caspian seabed to the shores of Azerbaijan.